12 Questions
What is a characteristic of alternative investments?
Somewhat not easily converted to cash or illiquid
What is a key difference between mutual funds and Unit Investment Trust Funds (UITF)?
Mutual funds have management fees, while UITF does not
What is the primary purpose of an insurance policy?
To hedge against the risk of financial losses
What is a characteristic of real estate investments?
Limited liquidity and high capital intensity
What is the technology used by cryptocurrencies to manage and record transactions?
Blockchain
What is the definition of commodities?
Basic goods used in commerce that is interchangeable with other commodities of the same type
What is the primary goal of allocating money in an investment?
To generate income or appreciation
What is the term for an increase in the value of an asset over time?
Appreciation
Which type of investment involves buying shares in a particular company?
Equity
What determines the interest rates offered by fixed income securities?
The solvency of the borrower and current interest rates
What is the term for a financial asset that does not fall into one of the conventional equities, income, or cash categories?
Alternative investment
What are the three main categories of investments?
Income and equities, alternatives, and other investment assets
Test your understanding of investment concepts, including the benefits, types, and returns on investments. Learn about income, equities, alternatives, and fixed income investments. Assess your knowledge of appreciation, gain, and loss in the financial market.
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