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

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

Question 2

The image shows Gale's investments during one year. Investments during One Year

Revolt · Accepted Answer

A: If she had purchased only the stock and had not diversified her investments, she would have lost money.

Question 3

What is the definition of liquidity?

Revolt · Accepted Answer

C: how easily an investment can be exchanged for cash

Question 4

Which investment is best for someone who is likely to need cash soon?

Revolt · Accepted Answer

D: savings account

Question 5

Which is an example of a high-risk investment?

Revolt · Accepted Answer

A: stock in a start-up company

Question 6

Someone who diversifies investments is more likely to

Revolt · Accepted Answer

B: offset their losses with gains.

Question 7

When investors purchase a commodity, they believe

Revolt · Accepted Answer

A: the commodity's price will go up after purchase.

Question 8

Which statement best describes stocks?

Revolt · Accepted Answer

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

Question 9

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

Revolt · Accepted Answer

C: He most likely would have benefited by diversifying.

Question 10

How is a savings account most useful?

Revolt · Accepted Answer

D: for using money in the near future but not right away

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