Investment Strategies Final Exam Prediction Questions 2024.

Investment Strategies Final Exam Prediction Questions 2024. Based on the graphic, what advantage does this 401k have over other types of investments? - CORRECT ANSWER It incentivizes employees to contribute by offering an employer match. Money that has been spent and cannot be recovered is known as costs. - CORRECT ANSWER sunk Which statements are true regarding an individual retirement account? Check all that apply. - CORRECT ANSWER -People can contribute to the account until retirement age. -Contributions to the account are limited each year. -Contributions can be deducted from federal taxes. Which is a commodity someone might invest in? - CORRECT ANSWER natural resources People who make money investing in the stock market - CORRECT ANSWER must pay taxes on profits. Which are common mistakes people make when investing? Check all they apply. - CORRECT ANSWER -They put all of their money into one kind of investment at a time. -They invest more money than they can afford. -They focus heavily on familiar investment opportunities. -They hold onto investments longer than they should to recoup losses. Analyzing the likelihood of the economy changing is part of understanding the of an investment. - CORRECT ANSWER RISKS A couple has decided to increase their income from investments for when they retire in twenty years. Which is the best way they can accomplish that goal? - CORRECT ANSWER by enrolling in a 401k and investing in the stock market