12
practice testMultiple Choice

Practice Test

Question 12 • Advanced Financial Algebra

Which investment is a fixed investment?

Answer
A
a rental property, with income based on rental agreements
B
an investment that pays a fixed interest rate semiannually and returns the principal at maturity
C
a fund that invests in a variety of stocks, with returns based on market performance
D
an account with a variable interest rate and no fixed term for withdrawal

Explanation

A fixed investment has terms such as a stated interest rate and a set maturity date. Choice D pays a fixed rate semiannually and returns the principal at maturity, so its return terms are established in advance. The other choices depend on rental income, stock-market performance, or a variable interest rate.

AI-written and checked against the verified answer.

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