What does the information demonstrate about Alex’s investments?
What does the information demonstrate about Alex’s investments? He most likely would have benefited by diversifying. … Why is it risky to invest in a commodity? The commodity’s price might drop significantly very quickly.
Which of these investments may be long term check all that apply?
Answer Expert Verified
Here are what could be considered long-term investments: mutual funds , bonds , retirement funds, and commodities. Saving accounts couldn’t be considered long-term investment because it could be liquidated basically anytime you want.
What is the definition of liquidity quizlet investing?
-Liquidity: Cash or cash equivalents and other assets that can be easily converted into cash. -Savings for emergencies should be highly liquid investments, such as savings accounts or money market accounts because the risk of loss is low and money can always be withdrawn.
What way does a 401k differ?
The commodity’s price might drop significantly very quickly. In what way does a 401(k) differ from an individual retirement account (IRA)? A 401(k) is created through an individual’s employer. How is a savings account most useful?
How easily an investment can be exchanged for cash is known as?
How easily an investment can be exchanged for cash is known as diversification.9 мая 2018 г.
Which is an example of an investment quizlet?
What are examples of growth investments? Stocks, collectibles, real estate, and mutual funds. … The sale of an investment for less than its purchase price.
Which of these are considered both short and long term investment?
Answer: Stocks, Commodities, Savings Account and CDs are the items which can be considered as both short-and long-term investments.
What is a long term investment?
A long-term investment is an account on the asset side of a company’s balance sheet that represents the company’s investments, including stocks, bonds, real estate, and cash. Long-term investments are assets that a company intends to hold for more than a year.
Which are examples of high risk investments quizlet?
Certificates of deposit, money market mutual funds, bonds, and annuities are examples of high-risk investments. People generally receive lower interest rates for longer terms when they invest in certificates of deposit. You just studied 10 terms!
What is liquidity and when is it an important consideration in savings?
Whether you are evaluating your investments or calculating your overall financial situation, liquidity is important to understand. Simply put, liquidity refers to how quickly you can convert something to cash and still maintain its value. Assets can be bought or sold, either as short-term or long-term investments.
What investment has the least liquidity?
Savings are yours to withdraw at anytime. Stocks can be sold on the stock market fairly easily. Property is less liquid because you have to search for a buyer which can take time.
What does liquidity mean?
Definition: Liquidity means how quickly you can get your hands on your cash. In simpler terms, liquidity is to get your money whenever you need it. Cash, savings account, checkable account are liquid assets because they can be easily converted into cash as and when required. …
Is Ira better than 401k?
The main difference between the two types of accounts is that employers offer 401(k)s, while IRA accounts are opened by individuals (you go to a broker or a bank to open an IRA). With an IRA, you’ll have access to many more investments. With a 401(k), the maximum annual contribution is much bigger than an IRA.
What is the difference between and IRA and a 401k?
The primary difference between an IRA and a 401k is that a 401k plan must be established by an employer. … For 401k plans that have employees, the employer has the option of making contributions to the employees’ account. An IRA, on the other hand, is an individual account, not tied to an employer.