Making Spending Decisions Answers

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Which rule is important to remember when evaluating risk?

Long-term investments tend to be less risky.

There is no connection between risk and return

Investments believed to be unpredictable are more risky.

The demand tends to be higher for high-risk investments.

The length of time before a loan must be repaid is called the of the loan.

interval

return

term

Loans that are considered to be high risk typically have a interest rate.

low

medium

high

The real value of the profit Amber made is .

$7125.50

$6982.50

$7625.00

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