ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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401k account
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Social Security benefits
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certificate of deposit
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None of the above
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Detailed explanation-1: -Which of the following is a good reason to have a financial reserve that’s larger than normal? You would not be able to find another job quickly if you lost yours. You have a large monthly car payment. You have mostly discretionary expenses.
Detailed explanation-2: -The Definition of a Stock Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.
Detailed explanation-3: -Which type of investment income happens when an investor sells ownership in an equity investment that’s gained value? capital gains.
Detailed explanation-4: -If your shares pay dividends, that would be considered one type of investment income. If you later sell the shares at a profit, the difference between the sales price and your basis (i.e., what you paid for the shares) is a capital gain-another type of investment income.