Investing And Insurance Practice Review Exam Questions 2024.

Investing And Insurance Practice Review Exam Questions 2024. Which is true about investments and risk? - CORRECT ANSWER Every investment carries some degree of risk. If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not? - CORRECT ANSWER No, the payment of dividends indicates that a company has earned profits. Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face? - CORRECT ANSWER The issuer could go bankrupt. What is one way in which bonds do not generate income for investors? - CORRECT ANSWER Bonds pay a specified amount at maturity. Which statement best describes how an investor makes money off debt? - CORRECT ANSWER An investor makes money by earning interest. Which best describes what a market index does? - CORRECT ANSWER An index measures market performance. Which best describes the role that government and business play in investments? - CORRECT ANSWER NOT They both invest money to earn a profit. Which factors can affect a stock's price? Check all that apply. - CORRECT ANSWER -the company's financial health -market performance -the economy Which can be traded in a commodities market? - CORRECT ANSWER oil Once stocks are on the market, which best explains how their prices are set? - CORRECT ANSWER Prices fluctuate on the basis of demand.