Principles of Investment

Question 1

Which rule is important to remember when evaluating risk?

Revolt · Accepted Answer

Investments believed to be unpredictable are more risky.

Question 2

Question 2

Revolt · Accepted Answer

During a period of economic growth, investors are likely to take risks and invest funds.: more; Monetary policy is directly implemented by .: less investment; Fiscal policy seeks to affect the economy and interest rates by directly modifying .: taxation and spending

Question 3

asset✔ percentageX dollar amount

Revolt · Accepted Answer

✔ percentage; Interest rates are generally expressed as a(n) of the loan.: percentage; The length of time before a loan must be repaid is called the of the loan.: term; Loans that are considered to be high risk typically have a interest rate.: high

Question 4

intervalreturn✔ term

Revolt · Accepted Answer

✔ term

Question 5

lowmedium✔ high

Revolt · Accepted Answer

✔ high

Question 6

How much interest will Pablo receive from his investment?

Revolt · Accepted Answer

$250 due to a real interest rate of 5 percent

Question 7

✔ moreX less

Revolt · Accepted Answer

✔ more; During a period of economic growth, investors are likely to take risks and invest funds.: more; Monetary policy is directly implemented by .: less investment; Fiscal policy seeks to affect the economy and interest rates by directly modifying .: taxation and spending; A decrease in the amount of money available to investors is most likely to result in .: less investment

Question 8

✔ less investmentX more investment

Revolt · Accepted Answer

✔ less investment

Question 9

interest rates for banks✔ taxation and spending

Revolt · Accepted Answer

✔ taxation and spending

Question 10

Question 10

Revolt · Accepted Answer

Amber paid in taxes to the federal government on her investment.: $1,900; She also paid in taxes to the state government.: $475; The inflation on the amount remaining after taxes and fees is .: $142.50; The real value of the profit Amber made is .: $6982.50

Principles of Investment Answers

More from this Course

TRY EDGENUITY HACKS