Investment Strategies

10 October 2022
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16 test answers

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diversification
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the practice of putting money into more than one kind of investment at a time
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guarantee
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to promise and deliver a future result
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liquidity
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the ability to quickly convert something into cash
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retirement
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the period of time after people end their working careers
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return
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the money earned on an investment in a certain time period
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Who regulates markets where investments are traded?
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the federal government
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Which investor is making a common error?
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an employee of a popular hardware store who invests only in that company's stock
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Analyzing the likelihood of the economy changing is part of understanding the __________ of an investment.
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risk
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Which investment has the least liquidity?
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a 401k
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Money that has been spent and cannot be recovered is known as ____________ costs.
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sunk
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Which is a commodity someone might invest in?
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natural resources
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A couple has decided to increase their income from investments for when they retire in 20 years. Which is the best way they can accomplish that goal?
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by enrolling in a 401k and investing in the stock market
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People who make money investing in the stock market...
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must pay taxes on profit
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Which investment advice would Gayle most likely give to Alex?
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Spread your investments in several different areas
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An investment with more liquidity would be ideal for someone who...
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knows they will need cash in the near future.
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How is a 401k different from an individual retirement account (IRA)?
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A 401k is created by an employer that matches contributions