Technology and Economics — Unit test Answers

Which is a commodity someone might invest in?

Which are common mistakes people make when investing? Choose four answers.They put all of their money into one kind of investment at a time. They divide their funds between more risky and less risky options.They analyze their comfort level with the types of risk they will take. They invest more money than they can afford.They focus heavily on familiar investment opportunities. They hold onto investments longer than they should to recoup losses.

Tina has $1,000 per year she can invest to save money for her future.Which option would allow the highest growth for Tina's investment?

The graph shows examples of investments with high and low liquidity.

Which statements are true regarding a traditional individual retirement account? Choose three answers.Employers create them and match employee contributions. People can contribute to the account until retirement age. People can withdraw money penalty-free at any time.Contributions to the account are limited each year. Contributions reduce taxable income.

Which investor is making a common error?

William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make enough money for retirement.Which investment option would best meet William’s needs?

People who make money investing in the stock market

The graphic shows a sample 401k investment.

Ida is 25 years old and invests a one-time lump sum of $10,000 in her company's 401(k), which earns an average annual return of 6% compounded annually.Using the Rule of 72, about how many years will it take for Ida's investment to double?