Investing — Unit test

Question 1

When investors purchase a commodity, they believe

Revolt · Accepted Answer

the commodity's price will go up after purchase.

Question 2

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

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savings account

Question 3

The image shows Gale's investments during one year. Investments during One Year

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If she had purchased only the stock and had not diversified her investments, she would have lost money.

Question 4

Which investment has the least liquidity?

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small business

Question 5

Which is an example of a high-risk investment?

Revolt · Accepted Answer

stock in a start-up company

Question 6

retirementvacationsrainy daysemergencies

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retirement

Question 7

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

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fourth largest source of income.

Question 8

Which statement best describes stocks?

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

Question 9

Someone who diversifies investments is more likely to

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offset their losses with gains.

Question 10

Which of these investments may be long term? Choose four answers.savings accountsmutual fundsbondsretirement fundscommodities

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mutual funds; bonds; retirement funds; commodities

Investing — Unit test Answers