Stocks vs Bank Deposits

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

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 (D)</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 (B)</p> Signup and view all the answers

More Like This

Types of Stock: Preferred vs. Common
18 questions

Types of Stock: Preferred vs. Common

UnforgettableOklahomaCity avatar
UnforgettableOklahomaCity
Finance: Stock Warrants vs. Stock Options
34 questions
Bonds vs Stocks
48 questions

Bonds vs Stocks

AppropriateNurture7150 avatar
AppropriateNurture7150
Use Quizgecko on...
Browser
Browser