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Questions and Answers
What is the primary purpose of the Johannesburg Securities Exchange (JSE)?
Which of the following is NOT a type of share traded on the JSE?
What is the primary characteristic of a unit trust?
Which of the following is NOT considered an investment opportunity mentioned in the text?
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What is the primary difference between business investments and unit trusts?
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Which type of share offers the highest level of ownership and control in a company?
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What is the primary purpose of investing in unit trusts?
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Which investment opportunity mentioned in the text involves the highest level of risk?
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What is the primary benefit of investing in preference shares?
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Which investment opportunity mentioned in the text is most suitable for individual investors with limited capital?
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What type of investment is suitable for individuals looking to preserve capital while earning interest?
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Which type of interest involves the interest on interest, leading to exponentially growing returns?
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What fundamental concept is crucial for making investment decisions according to the text?
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Which investment option involves investing in startups or expanding businesses with high risk and potential returns?
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What is a characteristic of endowments and retirement annuities according to the text?
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Which factor plays a significant role in determining the viability and attractiveness of investment opportunities?
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What is a potential disadvantage of investing in managed portfolios according to the text?
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What does the relationship between risk and return suggest in investment decisions?
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What is the purpose of understanding one's risk tolerance in investing?
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What type of account is a low-risk savings option with slightly higher returns than a regular savings account but less liquidity?
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Which of the following statements about compound interest is true?
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What is the primary advantage of investing in government retail bonds?
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Which of the following is NOT a factor that should inform investment decisions according to the text?
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What is the primary disadvantage of investing in venture capital?
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Which investment opportunity mentioned in the text is considered a low-risk savings option with slightly higher returns than a regular savings account?
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What is the primary purpose of understanding one's risk tolerance in investing?
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Which of the following investment opportunities is considered a long-term, low-risk option aimed at building wealth over time?
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What is the primary advantage of investing in managed portfolios according to the text?
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Which of the following statements about the relationship between risk and return is true?
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Which of the following statements about debentures is true?
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What distinguishes unit trusts from direct business investments?
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Which type of share provides its holders with priority in receiving dividends and assets during liquidation?
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What is the main function of the Johannesburg Securities Exchange (JSE) as mentioned in the text?
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What distinguishes founders' shares from ordinary shares?
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Which investment opportunity mentioned in the text involves spreading risk across various securities managed by professionals?
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What is the primary purpose of investing in mutual funds according to the text?
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Which type of investment opportunity caters well to individual investors with limited capital?
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What distinguishes founders' shares from preference shares?
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What differentiates unit trusts from mutual funds?
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Which characteristic applies specifically to investing in ordinary shares?
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What is a key feature of investing in government retail bonds?
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Which type of investment carries the highest level of uncertainty but also the potential for significant returns?
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What is a common characteristic of bonus shares?
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How do managed portfolios differ from direct investments?
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What is a distinguishing feature of endowments and retirement annuities?
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What role does the Johannesburg Securities Exchange (JSE) primarily play in the financial market?
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What is a significant difference between preference shares and unit trusts?
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What factor plays a crucial role in determining the overall viability and attractiveness of investment opportunities?
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Which investment type is characterized by fixed-interest securities issued by companies?
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What distinguishes 32-Day Notice Accounts from regular savings accounts?
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Which investment opportunity provides a way to invest collectively but is susceptible to risks like mismanagement or fraud?
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What is the primary advantage of investing in endowments and retirement annuities?
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Which type of interest is calculated only on the principal amount and does not consider interest on interest?
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What is the primary role of liquidity in investment decisions?
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Which investment opportunity provides the highest level of ownership and control in a business, but also carries the greatest risk?
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What is the primary distinction between ordinary shares and preference shares?
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Which of the following statements accurately describes the relationship between risk and return in investment opportunities?
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Which investment opportunity involves pooling funds from multiple investors into a single portfolio managed by professionals, allowing for diversification and risk-sharing?
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What is the primary advantage of investing in endowments and retirement annuities, as mentioned in the text?
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Which investment opportunity involves lending money to a company or government entity in exchange for interest payments and the eventual return of the principal amount?
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What is the primary purpose of understanding one's risk tolerance when considering investment opportunities?
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Which investment opportunity combines relatively low risk with the potential for substantial returns?
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What is the primary advantage of investing in managed portfolios over direct investments?
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Which investment factor is NOT mentioned in the text as crucial for making informed investment decisions?
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What characteristic distinguishes compound interest from simple interest?
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Which investment opportunity mentioned in the text is considered a low-risk savings option with slightly higher returns than a regular savings account?
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What is the primary purpose of understanding one's risk tolerance in investing?
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Which investment opportunity mentioned in the text is susceptible to the risks of mismanagement or fraud?
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What is the primary advantage of investing in government retail bonds?
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