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QuizMultiple Choice

Investing and Financial Markets

Question 1 • Personal Finance - EL3403

Which describes an investor’s primary goal of buying a loan?

Answer
A
to grow a business
B
to earn a profit off the interest
C
to bolster the economy
D
to provide capital to a business

Explanation

An investor who buys a loan is entitled to receive the borrower’s repayments, including interest. The primary goal is to earn a return from that interest, so the correct choice is “to earn a profit off the interest.” Growing or funding a business describes the borrower’s purpose, not the investor’s main goal.

AI-written and checked against the verified answer.

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