
Section 6.1: Investments
Flashcard
•
Social Studies
•
10th Grade
•
Practice Problem
•
Easy
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1.
FLASHCARD QUESTION
Front
What is the primary goal of investing?
Back
To increase wealth over time
2.
FLASHCARD QUESTION
Front
Which of the following is a characteristic of a short-term investment? Held for more than a year, Typically has higher returns than long-term investments, Held for a year or less, Always involves high risk
Back
Held for a year or less
3.
FLASHCARD QUESTION
Front
What does risk tolerance refer to in investing?
Back
The amount of uncertainty a person is willing to handle
4.
FLASHCARD QUESTION
Front
Which of the following is NOT a condition that indicates readiness to invest? Having an emergency fund with savings of eight to ten months of living expenses, Paying finance charges higher than any earnings on an investment, Having adequate insurance protection, Paying essential living expenses with discretionary income left over
Back
Paying finance charges higher than any earnings on an investment
5.
FLASHCARD QUESTION
Front
What is diversification in the context of investing?
Back
Spreading risk by putting money in different types of investments
6.
FLASHCARD QUESTION
Front
Which factor is NOT used to characterize investments? Degree of volatility, Rate of return, Risk, Amount of insurance coverage
Back
Amount of insurance coverage
7.
FLASHCARD QUESTION
Front
What is the rate of return in investing?
Back
The amount earned on an investment for a given period of time
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