Question

Which of the following is an example of demand deposits?(1 point)

Debit card

Credit card

Heloc

A mortgage on a home
If an individual investor is concerned about balancing risk and return in their investment portfolio, which strategy should they use?(1 point)

Liquidity

Diversification

More risk for greater reward

Less risk for greater reward
You are looking to invest some of your money. You are presented with two investments. Both offer the same risk with the same amount of liquidity. What additional information do you need to decide on an investment?(1 point)

You need to know how the money will be invested.

You need to know the return on each of the investments.

You need to know how easy it will be to get your money out of the inves

You need to know the chances you will lose money.

Answer 1

1) Debit card — it gives access to demand deposits (checking account funds).
2) Diversification — it balances risk and return across investments.
3) You need to know the return on each of the investments — risk and liquidity are the same, so compare expected returns.