Question 17 (1 point) Question 11 (1 point) Which of the following statements is TRUE? When buying a stock in a company, you are: If you diversify your portfolio, you are guaranteed to make a high return. It is wise to diversify your investment portfolio to reduce risk. investing in an index fund Investing in a diversified portfolio of stocks guarantees that you won't lose money with your investments, If you are under the age of 21, you are required to diversify your investment buying a portion of a company portfolio. diversifying your portfolio Question 12 (1 point) loaning money to a company When you purchase a municipal bond, you are: Question 18 (1 point) diversifying your portfolio Which of the following loans will typically offer the lowest interest rate? loaning money to a municipality Private Loan Federal Student Loan buying a portion of a municipality Both A & B investing in an index fund Payday loan Question 31 (1 point) Question 19 (1 point) Which statement below best describes the law of scarcity? One of the benefits of buying car insurance is.. If you pay your premium on-time every month, you won't have to pay anything People will act in their own self-interest extra if you are in an accident Businesses selling difficult to find products will make the most money If you are in an accident, the other driver cannot sue if you have car insurance Businesses must manufacture certain products because it is cheaper for them to If you have insurance and are pulled over for speeding, you won't get points on do so your license Businesses have limited resources and must decide how to best make use of If you are in an accident and another driver is injured, your insurance will cover them portions of his/her medical bills Question 32 (1 point) Question 20 (1 point) What is THE question an investor should ask before investing in a Roth IRA or a Credit card disclosure: Your due date is at least 25 days after the end of the billing Traditional IRA? cycle. We will not charge you interest on new purchases provided that you have paid your previous balance in full by the due date each month. Identify the true What type of investments do I want to make? statement. Do I want to pay taxes now (Roth IRA) or later (Traditional IRA)? The 25 days after the end of the billing cycle is referred to as the grace period" Do I want to make a guaranteed return of 6% or 8%? If you make your credit card payment before the due date, you will be charged Do I want to pay taxes now (Traditional IRA) or later (Roth IRA)? interest regardless of the amount of your payment If you pay your previous balance in full after the due date, the credit card company will not charge you interest If you make the minimum payment on your card within the 25 day period, the Question 33 (1 point) credit card company will not charge you interest What is the money a landlord holds to pay for damages caused by a tenant called? Question 21 (1 point) Security deposit Inspection fee The period before you have to begin repaying your student loans is known as the Lease deposit zero interest period Sublet fee grace period default period promotional period