7
practice testMultiple Choice

Practice Test

Question 7 • Personal Finance

Part B: Why does this matter?

Answer
A
Fees reduce risk
B
Lower costs increase net returns
C
Fees increase growth
D
Costs eliminate taxes

Explanation

Costs such as investment fees reduce the return an investor keeps. When costs are lower, more of the investment’s gains remain as net returns, so the correct choice is “Lower costs increase net returns.”

AI-written and checked against the verified answer.

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