AnswersCHS EconomicsInvesting and Financial Markets

Investing and Financial Markets Answers

7 verified answers
1
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Which is true about investments and risk?

L
Low-risk investments have a high return over the long run.
H
High-risk investments usually fail.
S
Safe investments are always somewhat profitable.
E
Every investment carries some degree of risk.
2
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D
Debt and loans are traded.
A
Assets are traded.
C
Commodities are traded.
S
Shares are traded.
3

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

T
The issuer may not raise enough capital.
T
The issuer could refuse to pay dividends.
T
The issuer could go bankrupt.
T
The issuer may not make a profit.
4

Which term refers to the possibility of an investor losing some or all of an investment?

r
risk
l
likelihood
p
probability
c
chance
5

Which statement best describes how an investor makes money off debt?

A
An investor makes money by issuing bonds.
A
An investor makes money by earning interest.
A
An investor makes money by raising capital.
A
An investor makes money by being repaid for the principal.
6

best

A
An index measures market performance.
A
An index measures economic trends.
A
An index measures growth.
A
An index measures the performance of a single stock.
7

best

T
They both use taxes to support a country’s growth.
T
They both invest money to earn a profit.
T
They both receive capital to use for growth.
T
They both act as angel investors for start-ups.
8

Which are common types of bonds that are currently issued? Check all that apply.

A
corporate bonds
B
equity bonds
C
municipal bonds
D
Treasury bills
E
Treasury notes
F
war bonds

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