Investments Concepts Overview
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Questions and Answers

What is the main goal of investing?

  • To spend money quickly
  • To achieve long-term financial goals (correct)
  • To minimize financial risk
  • To keep money stagnant
  • What is a portfolio?

  • A single investment
  • An investment with high liquidity
  • An investment with guaranteed returns
  • A collection of different investments (correct)
  • What does liquidity refer to in investments?

  • The stability of the investment value
  • The ability to buy and sell quickly (correct)
  • The ability to generate income
  • The long-term growth potential
  • Which type of investment includes real assets like land and buildings?

    <p>Real property</p> Signup and view all the answers

    What is the difference between direct and indirect investments?

    <p>Direct investments involve acquiring ownership directly, while indirect investments involve acquiring ownership through a professional manager</p> Signup and view all the answers

    What is the main difference between Debt and Equity securities?

    <p>Debt securities provide interest income and repayment of loan, while Equity securities provide ongoing ownership in a business.</p> Signup and view all the answers

    What is the primary characteristic of High-risk investments?

    <p>They are less predictable.</p> Signup and view all the answers

    What is the main distinction between Short-Term and Long-Term investments?

    <p>Short-Term investments have maturities of longer than one year, while Long-Term investments have maturities of one year or less.</p> Signup and view all the answers

    How do Financial Institutions participate in the investment process?

    <p>By pooling the resources of households and making loans or investing in securities.</p> Signup and view all the answers

    Who are considered Institutional Investors?

    <p>Investment professionals who manage other people's money.</p> Signup and view all the answers

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