ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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you will earn money on the principal you invest.
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you will earn money on the interest you earn.
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you can only do it if you are rich.
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you should start at a young age.
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Detailed explanation-1: -Today, this is a myth! It’s never been easier for anyone to invest, even if money is tight. You can invest with just a few hundred dollars and receive a personalized, diversified investment that meets your needs.
Detailed explanation-2: -Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains. In a larger sense, investing can also be about spending time or money to improve your own life or the lives of others.
Detailed explanation-3: -Keep some money in an emergency fund with instant access. Clear any debts you have, and never invest using a credit card. The earlier you get day-to-day money in order, the sooner you can think about investing.
Detailed explanation-4: -Rule Number 1: Diversify. Since some investments zig when others zag, divvy your money across several investment categories, from stocks to bonds to real estate. Rule Number 2: Rebalance. Rule Number 3: Dollar-cost average. Rule Number 4: Keep costs down.