Unit Test Answers

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1
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What are some characteristics of short-term investments? Check all that apply.They usually last for less than a year.They are considered low risk.They typically include both stocks and bonds.They typically help investors save for retirement. They can include savings accounts and CDs.

A
They usually last for less than a year.
B
They are considered low risk.
C
They typically include both stocks and bonds.
D
They typically help investors save for retirement.
E
They can include savings accounts and CDs.
2
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One reason why individuals focus on long-term investments is to .

A
pay for immediate expenses
B
save for their retirement
C
grow money quickly
5

Long-term investments tie up money for .

A
more than one year
B
less than one year
6

Which investment practice is Cody following?

A
buying commodities
B
short-term investing
C
diversifying investments
7

Which investment shortcoming has he failed to avoid?

A
focusing on sunk costs
B
focusing on the familiar
C
not knowing his personality
8

Which step should Cody take to improve his investment portfolio?

A
sell the failing stock
B
try to take more risks
C
be more conservative

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Unit Test Answers — WA-Financial Education