ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Spending money on anything you want
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Saving money constantly
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using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits
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Setting aside money for future use
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Detailed explanation-1: -Margin: Borrowed money used for investing is called margin. You can get credit from a broker to buy more than you have money for. The goal is to make enough money so that you will be able to repay the borrowed amount from your earnings.
Detailed explanation-2: -Bonds, stocks, mutual funds and exchange-traded funds, or ETFs, are four basic types of investment options.
Detailed explanation-3: -This is where the term ‘investment lending’ comes into play – the practice of borrowing money to invest in income producing assets. Income, in this instance, refers to either direct income by way of rent, dividend or distribution or capital gain – where assets appreciate in value over time.
Detailed explanation-4: -Lending money is an investment. Bonds and even savings accounts are loans that earn interest over time for the investor. Cash equivalents like money market accounts are easy to liquidate when needed and repay investors with a modest amount of interest.