Strategy Beginner: Introduction to Investment Strategy

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
_______ are taxed at a relatively low rate if you hold your investments long enough.
Choose wisely. There is only one correct answer.
Capital gains. Long-term capital gains are taxed at a lower rate to encourage investment.
2.
If you might need to borrow against your principal, you need _______.
Choose wisely. There is only one correct answer.
A collateral investment. A collateral investment can be used to secure a loan.
3.
Inflation affects _______.
Choose wisely. There is only one correct answer.
Both the value of investments and interest rates. Inflation affects both, which is why many investors watch it carefully.
4.
In investment strategies, risk in traditional terms is _______.
Choose wisely. There is only one correct answer.
Good and bad. Risk in traditional terms can mean you fail to make money, or even lose it; but possible returns usually increase with the amount of risk.
5.
The charge for investing in an annuity or mutual fund is called the ________.
Choose wisely. There is only one correct answer.
Load. The load is the charge for buying or selling shares in a mutual fund or annuity.