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Buying stocks or corporate or government bonds is a way to invest in Answer the

ID: 2705402 • Letter: B

Question

Buying stocks or corporate or government bonds is a way to invest in Answer                                                   
           the capital market.                             
           the credit market.                             
           the labor market.                             
           the buyers' market.                             
           the sellers' market.

When your expenses are greater than your income you have Answer                                                   
           sufficient cash to cover expenses.                             
           more capital to sell.                             
           a budget deficit.                             
           a budget surplus.                             
           reduced consumption.
If you had a budget surplus, which of the following choices would best increase that surplus? Answer                                                   
           Increase spending                             
           Save and invest                             
           Work fewer hours                             
           Borrow more                             
           Change jobs
Cash or an asset that can be easily and quickly converted to cash is called Answer                                                   
           a liquid asset.                             
           a budget excess.                             
           selling capital.                             
           investing.                             
           income.
Which of the following assets reduces expenses but does not increase income or store wealth? Answer                                                   
           Home                             
           Land                             
           Car                             
           Money market account                             
           Savings account
If an asset is worth more when you re-sell it than when you bought it, then you have Answer                                                   
           a capital loss.                             
           a capital gain.                             
           a store of wealth.                             
           a reduction in expenses.                             
           excess capital.

The benefit of debt is that you can Answer                                                   
           use money later rather than now.                             
           defer payment of interest.                             
           own an asset without paying for it.                             
           use it to store wealth.                             
           use other people's money.
The best uses of debt include all the following EXCEPT Answer                                                   
           to finance an education.                             
           to cover a budget deficit.                             
           to purchase a car.                             
           to buy a house.                             
           to fund other investments.
When is the best time to get an education? Answer                                                   
           After you get a job                             
           When you can afford one                             
           Before you sell your labor                             
           When interest rates are low                             
           After you have saved enough
Sources of income may be diversified by Answer                                                   
           having more than one employer.                             
           having several bank accounts.                             
           managing risks.                             
           having fewer investments.                             
           decreasing expenses.
Investments in assets may be diversified by Answer                                                   
           holding a few stocks.                             
           investing in a variety of assets.                             
           eliminating investments that lose value.                             
           selling investments at a higher price.                             
           converting assets to cash.
The stocks in Wayne's investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to Answer                                                   
           increase spending.                             
           reduce risk.                             
           increase income.                             
           reduce cost.                             
           increase variety.

Factors to consider when deciding to borrow capital include Answer                                                   
           costs in relation to the asset's value.                             
           the risk of costs exceeding benefits.                             
           the interest rate, and time to repay.                             
           a. and b.                             
           a., b., and c.
Buying stocks or corporate or government bonds is a way to invest in Buying stocks or corporate or government bonds is a way to invest in the capital market. the credit market. the labor market. the buyers' market. the sellers' market.

When your expenses are greater than your income you have Answer                                                   
           sufficient cash to cover expenses.                             
           more capital to sell.                             
           a budget deficit.                             
           a budget surplus.                             
           reduced consumption.
If you had a budget surplus, which of the following choices would best increase that surplus? Answer                                                   
           Increase spending                             
           Save and invest                             
           Work fewer hours                             
           Borrow more                             
           Change jobs
Cash or an asset that can be easily and quickly converted to cash is called Answer                                                   
           a liquid asset.                             
           a budget excess.                             
           selling capital.                             
           investing.                             
           income.
Which of the following assets reduces expenses but does not increase income or store wealth? Answer                                                   
           Home                             
           Land                             
           Car                             
           Money market account                             
           Savings account
If an asset is worth more when you re-sell it than when you bought it, then you have Answer                                                   
           a capital loss.                             
           a capital gain.                             
           a store of wealth.                             
           a reduction in expenses.                             
           excess capital.

The benefit of debt is that you can Answer                                                   
           use money later rather than now.                             
           defer payment of interest.                             
           own an asset without paying for it.                             
           use it to store wealth.                             
           use other people's money.
The best uses of debt include all the following EXCEPT Answer                                                   
           to finance an education.                             
           to cover a budget deficit.                             
           to purchase a car.                             
           to buy a house.                             
           to fund other investments.
When is the best time to get an education? Answer                                                   
           After you get a job                             
           When you can afford one                             
           Before you sell your labor                             
           When interest rates are low                             
           After you have saved enough
Sources of income may be diversified by Answer                                                   
           having more than one employer.                             
           having several bank accounts.                             
           managing risks.                             
           having fewer investments.                             
           decreasing expenses.
Investments in assets may be diversified by Answer                                                   
           holding a few stocks.                             
           investing in a variety of assets.                             
           eliminating investments that lose value.                             
           selling investments at a higher price.                             
           converting assets to cash.
The stocks in Wayne's investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to Answer                                                   
           increase spending.                             
           reduce risk.                             
           increase income.                             
           reduce cost.                             
           increase variety.

Factors to consider when deciding to borrow capital include Answer                                                   
           costs in relation to the asset's value.                             
           the risk of costs exceeding benefits.                             
           the interest rate, and time to repay.                             
           a. and b.                             
           a., b., and c.
When your expenses are greater than your income you have When your expenses are greater than your income you have sufficient cash to cover expenses. more capital to sell. a budget deficit. a budget surplus. reduced consumption. If you had a budget surplus, which of the following choices would best increase that surplus? If you had a budget surplus, which of the following choices would best increase that surplus? Increase spending Save and invest Work fewer hours Borrow more Change jobs Cash or an asset that can be easily and quickly converted to cash is called Cash or an asset that can be easily and quickly converted to cash is called a liquid asset. a budget excess. selling capital. investing. income. Which of the following assets reduces expenses but does not increase income or store wealth? Which of the following assets reduces expenses but does not increase income or store wealth? Home Land Car Money market account Savings account If an asset is worth more when you re-sell it than when you bought it, then you have If an asset is worth more when you re-sell it than when you bought it, then you have a capital loss. a capital gain. a store of wealth. a reduction in expenses. excess capital. The benefit of debt is that you can The benefit of debt is that you can use money later rather than now. defer payment of interest. own an asset without paying for it. use it to store wealth. use other people's money. The best uses of debt include all the following EXCEPT The best uses of debt include all the following EXCEPT to finance an education. to cover a budget deficit. to purchase a car. to buy a house. to fund other investments. When is the best time to get an education? When is the best time to get an education? After you get a job When you can afford one Before you sell your labor When interest rates are low After you have saved enough Sources of income may be diversified by Sources of income may be diversified by having more than one employer. having several bank accounts. managing risks. having fewer investments. decreasing expenses. Investments in assets may be diversified by Investments in assets may be diversified by holding a few stocks. investing in a variety of assets. eliminating investments that lose value. selling investments at a higher price. converting assets to cash. The stocks in Wayne's investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to The stocks in Wayne's investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to increase spending. reduce risk. increase income. reduce cost. increase variety. Factors to consider when deciding to borrow capital include Factors to consider when deciding to borrow capital include costs in relation to the asset's value. the risk of costs exceeding benefits. the interest rate, and time to repay. a. and b. a., b., and c.                             
           the capital market.                             
           the credit market.                             
           the labor market.                             
           the buyers' market.                             
           the sellers' market.

When your expenses are greater than your income you have Answer                                                   
           sufficient cash to cover expenses.                             
           more capital to sell.                             
           a budget deficit.                             
           a budget surplus.                             
           reduced consumption.
If you had a budget surplus, which of the following choices would best increase that surplus? Answer                                                   
           Increase spending                             
           Save and invest                             
           Work fewer hours                             
           Borrow more                             
           Change jobs
Cash or an asset that can be easily and quickly converted to cash is called Answer                                                   
           a liquid asset.                             
           a budget excess.                             
           selling capital.                             
           investing.                             
           income.
Which of the following assets reduces expenses but does not increase income or store wealth? Answer                                                   
           Home                             
           Land                             
           Car                             
           Money market account                             
           Savings account
If an asset is worth more when you re-sell it than when you bought it, then you have Answer                                                   
           a capital loss.                             
           a capital gain.                             
           a store of wealth.                             
           a reduction in expenses.                             
           excess capital.

The benefit of debt is that you can Answer                                                   
           use money later rather than now.                             
           defer payment of interest.                             
           own an asset without paying for it.                             
           use it to store wealth.                             
           use other people's money.
The best uses of debt include all the following EXCEPT Answer                                                   
           to finance an education.                             
           to cover a budget deficit.                             
           to purchase a car.                             
           to buy a house.                             
           to fund other investments.
When is the best time to get an education? Answer                                                   
           After you get a job                             
           When you can afford one                             
           Before you sell your labor                             
           When interest rates are low                             
           After you have saved enough
Sources of income may be diversified by Answer                                                   
           having more than one employer.                             
           having several bank accounts.                             
           managing risks.                             
           having fewer investments.                             
           decreasing expenses.
Investments in assets may be diversified by Answer                                                   
           holding a few stocks.                             
           investing in a variety of assets.                             
           eliminating investments that lose value.                             
           selling investments at a higher price.                             
           converting assets to cash.
The stocks in Wayne's investment portfolio lost value in the recession, but he also had CDs and a savings account. The effect of his investment diversification on his finances was to Answer                                                   
           increase spending.                             
           reduce risk.                             
           increase income.                             
           reduce cost.                             
           increase variety.

Factors to consider when deciding to borrow capital include Answer                                                   
           costs in relation to the asset's value.                             
           the risk of costs exceeding benefits.                             
           the interest rate, and time to repay.                             
           a. and b.                             
           a., b., and c.

Explanation / Answer

The capital market.


a budget deficit.


Save and invest


a liquid asset


Car


a capital gain.


use other people's money.


to cover a budget deficit.


When you can afford one


managing risks.


investing in a variety of assets.


reduce risk.


a., b., and c.