6
QuizMultiple Choice

Financial Planning and Consumer Protection — Test

Question 6 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Putting money into more than one kind of investment at a time is called

Answer
A
compound interest.
B
sunken cost.
C
liquidity.
D
diversification.

Explanation

Putting money into different types of investments is called diversification. It spreads investments across different assets rather than relying on just one.

AI-written and checked against the verified answer.

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