BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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short-term in 5-10 year terms in a mutual fund.
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by putting all of your money into one stock/company.
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long-term over 30+ years in a mutual fund.
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by increasing the liquidity of your funds.
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Detailed explanation-1: -The longer the investor can allow their returns to compound, the more money they may be able to make. As a result, investors may want to consider compounding as more a part of a long-term investment strategy than a short-term strategy.
Detailed explanation-2: -When you invest in compound interest, you are buying a debt-based asset that uses its own growth to further grow over time. The best way to invest in compound interest is with banking products and bonds. A financial advisor can help you decide how to allocate assets in your portfolio for retirement.
Detailed explanation-3: -Compound interest causes your wealth to grow faster. It makes a sum of money grow at a faster rate than simple interest because you will earn returns on the money you invest, as well as on returns at the end of every compounding period. This means that you don’t have to put away as much money to reach your goals!
Detailed explanation-4: -Increased Compounding Periods The more compounding periods throughout this one year, the higher the future value of the investment, so naturally, two compounding periods per year are better than one, and four compounding periods per year are better than two.