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Questions and Answers
What is the primary factor that determines bond rates?
What is the primary factor that determines bond rates?
- Interest rates (correct)
- Stock market performance
- Federal Reserve's quantitative easing
- Mutual fund's portfolio manager
What is the minimum amount required to invest in a mutual fund?
What is the minimum amount required to invest in a mutual fund?
- $10,000
- $1,000 (correct)
- $5,000
- $500
What is the primary benefit of investing in mutual funds?
What is the primary benefit of investing in mutual funds?
- Lower management fees
- Higher returns through active management
- Diversification into multiple stocks (correct)
- Guaranteed investment returns
What is the main difference between mutual funds and ETFs?
What is the main difference between mutual funds and ETFs?
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What is the purpose of a portfolio manager in a mutual fund?
What is the purpose of a portfolio manager in a mutual fund?
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What is an asset class?
What is an asset class?
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What is the benefit of ETFs tracking an underlying index?
What is the benefit of ETFs tracking an underlying index?
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What is the safest asset class?
What is the safest asset class?
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What is a bond?
What is a bond?
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What is a characteristic of a CD?
What is a characteristic of a CD?
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What does the investment risk ladder show?
What does the investment risk ladder show?
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Why do CDs typically provide higher interest rates than savings accounts?
Why do CDs typically provide higher interest rates than savings accounts?
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