Investing

Question 1

Long-term investments tie up money for.

Revolt · Accepted Answer

more than one year

Question 2

One reason why individuals focus on long-term investments is to save for.

Revolt · Accepted Answer

retirement

Question 3

Money invested in a CD than money used to purchase a home.

Revolt · Accepted Answer

has greater liquidity

Question 4

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

Revolt · Accepted Answer

The higher the risk, the higher the potential return.

Question 5

To minimize risk, investors should .

Revolt · Accepted Answer

diversify their investments

Question 6

A(n)allows both employees and employers to contribute to a retirement plan.

Revolt · Accepted Answer

401(k)

Question 7

Interest that builds on the principle and the interest already gained is .

Revolt · Accepted Answer

compound interest

Investing Answers