If a savings tool offers a very low risk of losing your money, you should expect
a low rate of return.
a moderate rate of return.
a high rate of return.
an uncertain rate of return.
You select a savings tool that is low risk, but requires you to leave your money in the account for at least one year. If you take it out early, they charge you a significant penalty. Which savings tool did you select?
Savings Account
Certificate of Deposit
Stock
IRA
Bria is a high school senior. She just inherited $10,000. She does not need to use the money, and would instead like to invest the money in a tool that will give her the HIGHEST potential returns. Which of the following would be the best investment tool for Bria?
certificate of deposit
US Treasury bond
savings account
stock
At 22, you decide to begin putting money into an Individual Retirement Account (IRA). Which of the following BEST describes the benefits that ONLY a traditional IRA can give you?
You can earn dividends directly from corporations.
You can receive interest payments directly from the government.
You can defer paying taxes until you withdraw the money.
You can earn substantial interest on your saved income.
Nick wishes to place his money in a diversified investment with high potential returns. Which of the following should he select?