Unit Test Answers

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more than one year less than one year

A
more than one year
B
less than one year
2
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immediate expensesretirement

A
immediate expenses
B
retirement
3

401(k) IRA

A
401(k)
B
IRA
4

What rule is important to remember when evaluating risk and return?

A
The higher the risk, the higher the potential return.
B
The higher the risk, the lower the potential return.
C
The lower the risk, the higher the potential return.
D
There is no connection between risk and return.
5

not invest when risk is highdiversify their investments invest their money in one place

A
not invest when risk is high
B
diversify their investments
C
invest their money in one place
6

simple interestcompound interest

A
simple interest
B
compound interest
7

is more diversifiedhas greater liquidity is at greater risk

A
is more diversified
B
has greater liquidity
C
is at greater risk

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Unit Test Answers — WA-Financial Education