3.5 Principles of Investment

Question 1

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

Revolt · Accepted Answer

more

Question 2

Monetary policy is directly implemented by .

Revolt · Accepted Answer

the Federal Reserve

Question 3

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

Revolt · Accepted Answer

taxation and spending

Question 4

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

Revolt · Accepted Answer

less investment

Question 5

Amber paid in taxes to the federal government on her investment.

Revolt · Accepted Answer

$1,900; 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

Question 6

Which rule is important to remember when evaluating risk?

Revolt · Accepted Answer

Investments believed to be unpredictable are more risky.

Question 7

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

Revolt · Accepted Answer

percentage

Question 8

How much interest will Pablo receive from his investment?

Revolt · Accepted Answer

$250 due to a real interest rate of 5 percent

Question 9

Which rule is important to remember when evaluating risk?

Revolt · Accepted Answer

Investments believed to be unpredictable are more risky.

Question 10

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

Revolt · Accepted Answer

percentage

3.5 Principles of Investment Answers

More from this Course

TRY EDGENUITY HACKS