Investing Answers

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1
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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
27481

Use what you have learned about risk and return to complete these sentences.

Answers:
To minimize risk, investors should .:diversify their investments
Interest that builds on the principle and the interest already gained is .:compound interest
27482

Which investment option should Angela choose?

A
stocks
B
commodities
C
saving accounts
D
mutual funds
27483

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.
27484

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
27485

Use what you have learned about long-term investments to answer these questions.

Answers:
Long-term investments tie up money for.:more than one year
One reason why individuals focus on long-term investments is to save for.:retirement
A(n)allows both employees and employers to contribute to a retirement plan.:401(k)
27486

Which investment option should Angela choose?

A
stocks
B
commodities
C
saving accounts
D
mutual funds
27487

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.
27488

Use what you have learned about risk and return to complete these sentences.

Answers:
To minimize risk, investors should .:diversify their investments
Interest that builds on the principle and the interest already gained is .:compound interest
Money invested in a CD than money used to purchase a home.:has greater liquidity
27489

simple interestcompound interest

A
simple interest
B
compound interest
27490

is more diversifiedhas greater liquidity is at greater risk

A
is more diversified
B
has greater liquidity
C
is at greater risk
27491

immediate expenses✔ retirement

A
immediate expenses
B
✔ retirement
27492

simple interest✔ compound interest

A
simple interest
B
✔ compound interest
27493

✔ 401(k) IRA

A
✔ 401(k)
B
IRA
27494

is more diversified✔ has greater liquidity is at greater risk

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

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