SAVINGS AND INVESTMENT

Investing can refer to committing to any endeavor, not just financial ones.

• True

• False

Which one of the following is shown first when the assets are arranged in the order of their liquidity?

• Time deposits

• Bonds

• Cash in hand

• Stocks

Dividend payments are the only way investors benefit from equity investments.

• True

• False

Investors in mutual funds have direct ownership of the assets in the fund.

• True

• False

1. Which of the following is not a benefit of savings?

• Financial security in emergencies

• Investment opportunities

• Accumulation of wealth over time

• High-risk returns

Government and corporate bonds are also referred to as fixed-income investments.

• True

• False

The return in financial investment is determined by comparing the end result with the initial investment.

• True

• False

Employment of funds on assets to earn a return is known as?

• Loan

• Liability

• Assets

• Investment

1. What are the risks of investment? (Choose more than 1 correct answer)

• The risk that the amount of money you invest may not be fully returned or may be partially lost.

• Financial markets can experience significant fluctuations, causing volatility in asset prices and potentially reducing the value of investments.a

• During economic hardships, companies and financial markets can suffer severe impacts, leading to a decline in the value of investments.

• Lack of diversification in investments can increase the risk of loss, as a specific change in a particular sector can have a significant impact on the entire portfolio.

nvestors agree to invest in high- risk investments if only

• There are any true speculations

• The predicted return is satisfactory for taking a risk

• There are no safe options except for holding cash

• The return is short