Investing — Test Answers

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Which strategies support long-term investing?

All cash

No planning

Diversified portfolio

Growth-focused assets

Alex delays saving for 15 years. What is the most likely outcome?

no impact

higher total savings

more employer match

less time for growth reduces total savings

Why do tax-deferred accounts support growth?

They eliminate losses

They allow more money to grow before taxes

They increase fees

They remove risk

Which action is an example of a service provided by an organization receiving charitable donations?

training a competitive dance troupe within a teacher-owned studio

hosting children’s parties at a paint-your-own-pottery franchise

renting booths at an art show on privately owned fairgrounds

maintaining a public broadcasting radio station

Why might automation reduce mistakes?

Removes human judgment

Reduces investment options

Guarantees profits

Avoids emotional reactions

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