BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher risk usually offers higher potential return.
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Higher risk usually offers lower potential return.
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Greater liquidity usually offers higher potential return.
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Greater liquidity usually offers lower potential return.
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Detailed explanation-1: -The easiest way to become a millionaire is to take advantage of compounding by starting to save your money as soon as possible. The earlier you save, the more interest you accumulate. And you’ll earn more money on the interest you earn.
Detailed explanation-2: -$1 Million the Hard Way If you’re starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you’ll need to save anywhere from $13, 000 to $15, 500 a month and invest it wisely enough to earn an average of 10% a year.
Detailed explanation-3: -While you need to save for a very long time it is possible for most people with a decent income to become a millionaire simply from investing in stocks! However, it is important to remember that overnight millionaire stories in the stock market are usually fabricated, or the result of one or a few lucky trades.
Detailed explanation-4: -Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.