13
practice testMultiple Choice

Practice Test

Question 13 • Personal Finance

Part A: Which tool reduces the number of decisions an investor must make?

Answer
A
Robo-advisor
B
Bank account
C
Discount broker
D
Trading platform

Explanation

A robo-advisor automates investment decisions, such as choosing and managing a portfolio based on an investor’s goals and risk tolerance. This reduces the number of decisions the investor must make. A discount broker or trading platform generally gives investors tools to make their own choices.

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