ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Answer and Explanation: The statement is True. Explanation: The investments account represents a commitment of funds of at least a period exceeding one year or more meaning thereby that, investments account include only long-term investments and not short-term investments.
Detailed explanation-2: -A long-term investment usually means an investment period of one to three months. Stocks are insured against loss by most banks and credit unions. By automatically reinvesting dividends, you are buying additional shares and increasing your investment. Interest is the fee received for the use of money.
Detailed explanation-3: -What are Long-Term Investments? Long-term investments are assets that an individual or company intends to hold for a period of more than three years.
Detailed explanation-4: -Generally speaking, long-term investing for individuals is often thought to be in the range of at least seven to 10 years of holding time, although there is no absolute rule.
Detailed explanation-5: -What is true of a long term investment? the value of the investment fluctuates over time.