AnswersPersonal Finance - EL3403Taxes

Principles of Investment Answers

23 verified answers4 views
1
Free Preview

Which rule is important to remember when evaluating risk?

A
Long-term investments tend to be less risky.
B
There is no connection between risk and return
C
Investments believed to be unpredictable are more risky.
D
The demand tends to be higher for high-risk investments.
2
Free Preview

The length of time before a loan must be repaid is called the of the loan.

A
interval
B
return
C
term
3

Loans that are considered to be high risk typically have a interest rate.

A
low
B
medium
C
high
4

A decrease in the amount of money available to investors is most likely to result in .

A
less investment
B
more investment
5

Interest rates are generally expressed as a(n) of the loan.

A
asset
B
percentage
C
dollar amount
6

How much interest will Pablo receive from his investment?

A
$200 due to a real interest rate of 4 percent
B
$250 due to a real interest rate of 5 percent
C
$300 due to a real interest rate of 6 percent
D
$350 due to a real interest rate of 7 percent
7

During a period of economic growth, investors are likely to take risks and invest funds.

A
more
B
less
8

Monetary policy is directly implemented by .

A
the Federal Reserve
B
legislatures
9

Fiscal policy seeks to affect the economy and interest rates by directly modifying .

A
interest rates for banks
B
taxation and spending
10

Which rule is important to remember when evaluating risk?

A
Long-term investments tend to be less risky.
B
There is no connection between risk and return
C
Investments believed to be unpredictable are more risky.
D
The demand tends to be higher for high-risk investments.
11

$2,000✔ $1,900X $3,000

Answers:
Amber paid in taxes to the federal government on her investment.:$1,900
She also paid in taxes to the state government.:$475
The inflation on the amount remaining after taxes and fees is .:$142.50
The real value of the profit Amber made is .:$6982.50
12

X asset✔ percentagedollar amount

Answers:
Interest rates are generally expressed as a(n) of the loan.:percentage
The length of time before a loan must be repaid is called the of the loan.:term
Loans that are considered to be high risk typically have a interest rate.:high
13

How much interest will Pablo receive from his investment?

A
$200 due to a real interest rate of 4 percent
B
$250 due to a real interest rate of 5 percent
C
$300 due to a real interest rate of 6 percent
D
$350 due to a real interest rate of 7 percent
14

During a period of economic growth, investors are likely to take risks and invest funds.

Answers:
During a period of economic growth, investors are likely to take risks and invest funds.:more
Monetary policy is directly implemented by .:the Federal Reserve
Fiscal policy seeks to affect the economy and interest rates by directly modifying .:more investment
A decrease in the amount of money available to investors is most likely to result in .:less investment
15

✔ $475X $1,000$500

A
✔ $475
B
X $1,000
C
$500
16

intervalreturn✔ term

A
interval
B
return
C
✔ term
17

Monetary policy is directly implemented by .

A
the Federal Reserve
B
legislatures
18

✔ less investmentmore investment

A
✔ less investment
B
more investment
19

X $190.00$200.00✔ $142.50

A
X $190.00
B
$200.00
C
✔ $142.50
20

lowmedium✔ high

A
low
B
medium
C
✔ high

Did you find these answers helpful?

More from this Course

Instruction
22 verified answers

Managing Financial Information

Instruction
23 verified answers

Taxes

Instruction
24 verified answers

Paying Taxes

Principles of Investment Answers — Personal…