The Fundamentals of Investing

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Questions and Answers

What is the definition of investing?

  • The act of spending money on luxury items
  • The act of gambling with money or capital
  • The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit (correct)
  • The act of saving money for retirement

Why might it be important for you to invest?

  • To let your money work for you (correct)
  • To gamble with your money
  • To spend money on luxury items
  • To save money for retirement

What are some potential benefits of investing for retirement?

  • Having a pension program
  • Maintaining your current lifestyle
  • Retiring early (correct)
  • Relying on social security

What is compound interest?

<p>Interest calculated on the initial principal and also on the accumulated interest (B)</p> Signup and view all the answers

Why is it important to start investing early?

<p>It allows for the establishment of a large amount of money in the future (D)</p> Signup and view all the answers

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