BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which type of investment has the most risk?
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Corporate bonds
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A savings account
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U.S Treasury Bonds
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Corporate Stocks
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Explanation:
Detailed explanation-1: -High-risk investments include currency trading, REITs, and initial public offerings (IPOs).
Detailed explanation-2: -Growth stocks and value stocks Growth stocks tend to have higher risk levels, but the potential returns can be extremely attractive.
Detailed explanation-3: -Stock risks Given the numerous reasons a company’s business can decline, stocks are typically riskier than bonds. However, with that higher risk can come higher returns.
Detailed explanation-4: -Business risk may be the best known and most feared investment risk. It’s the risk that something will happen with the company, causing the investment to lose value.
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