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Which is a feature of a certificate of deposit (CD)?
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
Which statement best reflects the philosophy of “pay yourself first”?
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
Which correctly describes the security level of savings tools?
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
A bond is:
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
Elliot’s stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
When taking advantage of the time value of money, which is most likely to result in the largest return?
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
Kylee’s Personal Finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is the most correct description of liquidity?
Funds deposited in a CD are held for a certain length of time.
a type of debt that a company issues to investors for a specified period of time.
Savings tools are secure because they are protected by the U.S. government against loss.
How quickly and easily an asset can be converted into cash
decreases risk by investing money in a variety of investment tools.
A brokerage firm
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Invest as long as possible and at the highest interest rate possible.
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