Investing

Question 1

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

Revolt · Accepted Answer

B: smallest source of income.

Question 2

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

Revolt · Accepted Answer

D: savings account

Question 3

How is a savings account most useful?

Revolt · Accepted Answer

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

Question 4

What is the relationship between risk and return?

Revolt · Accepted Answer

A: A higher risk often means a higher return.

Question 5

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 6

Which investment has the least liquidity?

Revolt · Accepted Answer

D: small business

Question 7

Which is an example of a high-risk investment?

Revolt · Accepted Answer

A: stock in a start-up company

Question 8

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 9

When investors purchase a commodity, they believe

Revolt · Accepted Answer

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

Question 10

Which statement best describes stocks?

Revolt · Accepted Answer

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

Investing Answers

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