ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
spending money with the goal of making more money
|
|
|
spending money to get out of credit card debt
|
|
|
saving money for long term goals
|
|
|
paying a fee to borrow money
|
Detailed explanation-1: -Any person who commits capital with the expectation of financial returns is an investor. Common investment vehicles include stocks, bonds, commodities, and mutual funds. Investing is allocating resources, usually money, with the expectation of earning an income or profit.
Detailed explanation-2: -Bottom line, spending is disbursing money for living expenses and others, while investing is spending your money to build your financial wealth. When you start to spend less on things that don’t matter in the long-term, you can put that extra money in the right investment vehicles to set up for a secure future.
Detailed explanation-3: -Safety, income, and capital gains are the big three objectives of investing. But there are others that should be kept in mind when they choose investments.
Detailed explanation-4: -Investment income is the profit earned from investments such as real estate and stock sales. Dividends from bonds also are investment income. Investment income is taxed at a different rate than earned income. The profits from the sale of gold coins or fine wine could be considered investment income.
Detailed explanation-5: -Bonds, stocks, mutual funds and exchange-traded funds, or ETFs, are four basic types of investment options.