Investing

Question 1

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.

Question 2

How is a savings account most useful?

Revolt · Accepted Answer

for using money in the near future but not right away

Question 3

What is the relationship between risk and return?

Revolt · Accepted Answer

A higher risk often means a higher return.

Question 4

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 5

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

Revolt · Accepted Answer

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

Question 6

Which of these investments may be long term? Choose four answers.savings accountsmutual fundsbondsretirement fundscommodities

Revolt · Accepted Answer

mutual funds; bonds; retirement funds; commodities

Question 7

retirementvacationsrainy daysemergencies

Revolt · Accepted Answer

retirement

Question 8

The pie graph shows sources of income for people ages 65 and over in 2010.

Revolt · Accepted Answer

fourth largest source of income.

Question 9

Someone who diversifies investments is more likely to

Revolt · Accepted Answer

offset their losses with gains.

Question 10

Why is it risky to invest in a commodity?

Revolt · Accepted Answer

The commodity's price might drop significantly very quickly.

Investing Answers

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