ScienceEconomicsInvesting example #21938
Please enter something

Investing

Ileana Gray avatar Ileana Gray
25 July 2022
4.7 (114 reviews)
15 test answers

Unlock all answers in this set

Unlock answers (11)
question
Which investment is best for someone who is likely to need cash soon?
answer
savings account
question
Which of these investments may be long term? Check all that apply.
answer
mutual funds bonds retirement funds commodities
question
The image shows Alex's investments in one year. Investments during One Year What does the information demonstrate about Alex's investments?
answer
He most likely would have benefited by diversifying.
question
Long-term investments are most commonly used to save money for
answer
retirement.
question
Which investment has the least liquidity?
answer
corporation
question
Why is it risky to invest in a commodity?
answer
The commodity's price might drop significantly very quickly.
question
What is the relationship between risk and return?
answer
A higher risk often means a higher return.
question
Which are examples of high-risk investments? Check all that apply.
answer
stock mutual fund
question
In what way does a 401(k) differ from an individual retirement account (IRA)?
answer
A 401(k) is created through an individual's employer.
question
Which statements apply to a certificate of deposit (CD)? Check all that apply.
answer
It can be purchased from a banking institution. It can be purchased for almost any amount.
question
The image shows Gale's investments during one year. Investments during One Year What does the information demonstrate about Gale's investments?
answer
If she had purchased only the stock and had not diversified her investments, she would have lost money.
question
When investors purchase a commodity, they believe
answer
the commodity's price will go up after purchase.
question
What is the definition of liquidity?
answer
how easily an investment can be exchanged for cash
question
The pie graph shows sources of income for people ages 65 and over in 2010. According to this chart, among people 65 and over, investment income represents the
answer
fourth largest source of income.
question
How is a savings account most useful?
answer
for using money in the near future but not right away