AnswersOR-Grade 8 US HistoryMaking Spending Decisions

Investment Strategies Answers

10 verified answers
1
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If the Federal Reserve decreased the money supply, what would the effects be? Check all that apply.

A
decreased interest rates
B
increased interest rates
C
decreased borrowing
D
increased borrowing
E
decreased investing
F
increased investing
2
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Taxes are often owed on

A
initial investments.
B
the current value of investments.
C
the real value of investments.
D
investment returns.
3

Which statement best describes how inflation affects the value of investments over time?

A
It erases the value of investments.
B
It increases the value of money.
C
It decreases the value of money.
D
It controls the value of investments.
4

Compared to high-risk investments, low- and medium-risk investments are in higher demand because they

A
are always affordable.
B
last only a short time.
C
are considered safer.
D
guarantee a profit.
5

Which statement is true of the relationship between risk and return?

A
The greater the risk, the greater the potential return.
B
The relationship between risk and return is always the same.
C
The greater the risk, the lower the potential return.
D
The relationship depends on the individual investment.
7

[BLANK]

A
Budgetary
B
Fiscal
C
Inflation
D
Monetary
8

Changes in monetary policy have the greatest effect on

A
income tax rates.
B
service fees and expenses.
C
demand for investments.
D
government spending.
9

Why should investors know the difference between nominal and real interest rates?

A
to know what they are likely to lose
B
to understand changes in monetary policy
C
to guarantee an investment’s profitability
D
to recognize the effects of inflation

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Investment Strategies Answers — OR-Grade 8 US…