Investing

Question 1

Which investment option should Angela choose?

Revolt · Accepted Answer

C: saving accounts

Question 2

What rule is important to remember when evaluating risk and return?

Revolt · Accepted Answer

A: The higher the risk, the higher the potential return.

Question 3

To minimize risk, investors should .

Revolt · Accepted Answer

B: diversify their investments

Question 4

Long-term investments tie up money for.

Revolt · Accepted Answer

A: more than one year

Question 5

Interest that builds on the principle and the interest already gained is .

Revolt · Accepted Answer

B: compound interest

Question 6

One reason why individuals focus on long-term investments is to save for.

Revolt · Accepted Answer

B: retirement

Question 7

Money invested in a CD than money used to purchase a home.

Revolt · Accepted Answer

B: has greater liquidity

Question 8

A(n)allows both employees and employers to contribute to a retirement plan.

Revolt · Accepted Answer

A: 401(k)

Investing Answers