Insurance

Question 1

Which statements apply to a certificate of deposit (CD)? Choose two answers. It is always purchased as a short-term investment.It can be purchased from a banking institution.It is always purchased as a long-term investment.It can be purchased for almost any amount.It is purchased through an individual's employer.

Revolt · Accepted Answer

It can be purchased from a banking institution.; It can be purchased for almost any amount.

Question 2

What is the definition of liquidity?

Revolt · Accepted Answer

how easily an investment can be exchanged for cash

Question 3

Which is an example of a high-risk investment?

Revolt · Accepted Answer

stock in a start-up company

Question 4

When investors purchase a commodity, they believe

Revolt · Accepted Answer

the commodity's price will go up after purchase.

Question 5

Which statement best describes stocks?

Revolt · Accepted Answer

They are an investment in a company’s progress and profits.

Question 6

The image shows Alex’s investments in one year. Investments during One Year

Revolt · Accepted Answer

He most likely would have benefited by diversifying.

Question 7

How is a savings account most useful?

Revolt · Accepted Answer

for using money in the near future but not right away

Question 8

What might convince an investor to buy stock or mutual funds?

Revolt · Accepted Answer

news that a company is about to release a promising product

Question 9

retirementvacationsrainy daysemergencies

Revolt · Accepted Answer

retirement

Question 10

In what way does a 401(k) differ from an individual retirement account (IRA)?

Revolt · Accepted Answer

A 401(k) is created through an individual’s employer.

Insurance Answers

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