Stocks vs Bank Deposits
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Stocks vs Bank Deposits

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Questions and Answers

Which investment option has the potential for unlimited upside?

  • Bank deposits
  • Real estate
  • Bonds
  • Stocks (correct)

    • What is the disadvantage of investing in bank deposits?

  • Lower interest income (correct)
  • Riskiest of all assets
  • Unlimited upside potential
  • Settlement risk if the bank closes

    • What is the advantage of investing in stocks?

  • Higher interest income
  • Limited upside
  • Unlimited upside (correct)
  • Guaranteed returns

    • What is the disadvantage of investing in stocks?

    <p>No guaranteed returns</p> Signup and view all the answers

    What is the advantage of investing in bank deposits?

    <p>Known income based on outstanding principal and current interest rate</p> Signup and view all the answers

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