BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Possibility that an investment will fail to pay the expected return
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Money invested is usually used to pay for long-term goals
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Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss
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The danger that money won’t be worth as much in the future as it is today.
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Detailed explanation-1: -T/F: A speculative investment is one that might earn large profit in a short period of time. T/F: Investments are assets purchases with the goal of providing additional income from the asset itself but with the risk of loss. T/F: A bond is a share of ownership in the company.
Detailed explanation-2: -An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.
Detailed explanation-3: -Investment assets are tangible or intangible items obtained for producing additional income or held for speculation in anticipation of a future increase in value. Examples of investment assets include mutual funds, stocks, bonds, real estate, and retirement savings accounts such as 401(k)s and IRAs.
Detailed explanation-4: -Asset allocation Essentially, it is the process wherein investors put money in both volatile and non-volatile assets in such a way that helps generate substantial returns at minimum risk. Financial experts suggest that asset allocation must be aligned as per investor’s financial goals and risk appetite.