Saving and Investing

Question 1

Long-term investments are usually purchased and held for .

Revolt · Accepted Answer

longer than 5 years

Question 2

Mutual funds use money from to buy .

Revolt · Accepted Answer

many investors

Question 3

Mutual funds use money from to buy .

Revolt · Accepted Answer

many different assets

Question 4

Stocks represent a company.

Revolt · Accepted Answer

ownership in

Question 5

In finance, liquid describes investments that can more easily be changed to .

Revolt · Accepted Answer

cash

Question 6

Which statement best describes the relationship between risk and investments?

Revolt · Accepted Answer

Investments with higher risk have higher expected rates of return.

Question 7

How do investors benefit from diversification?

Revolt · Accepted Answer

Diversification spreads risk across different industries and assets.

Question 8

Which statements describe short-term investments? Choose three correct answers.They are difficult to change into cash.They come with little or no risk.They have lower rates of return.They require less cash than others.They require large amounts of money.

Revolt · Accepted Answer

They come with little or no risk.; They have lower rates of return.; They require less cash than others.

Question 9

Short-term investments are liquid than other investments.

Revolt · Accepted Answer

more

Question 10

Savings and money market accounts are both .

Revolt · Accepted Answer

insured by the government

Saving and Investing Answers

More from this Course

TRY EDGENUITY HACKS