Investing

Question 1

What is the relationship between risk and return?

Revolt · Accepted Answer

A higher risk often means a higher return.

Question 2

Someone who diversifies investments is more likely to

Revolt · Accepted Answer

offset their losses with gains.

Question 3

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

Revolt · Accepted Answer

fourth largest source of income.

Question 4

What is the definition of liquidity?

Revolt · Accepted Answer

how easily an investment can be exchanged for cash

Question 5

What is the definition of risk?

Revolt · Accepted Answer

possibility of losing money on an investment

Question 6

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 7

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 8

retirementvacationsrainy daysemergencies

Revolt · Accepted Answer

retirement

Question 9

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

Revolt · Accepted Answer

savings account

Question 10

Which statement best describes stocks?

Revolt · Accepted Answer

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

Investing Answers

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