The Most Important Investment Prerequisites Are

question 6

Multiple Choice

The most important investment prerequisites are

• A)adequate income and savings.
• B)adequate income and insurance.
• C)adequate insurance and liquidity.
• D)an investment plan and professional advice.
• E)consistency and risk awareness.

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Definitions:

Fiscal Policy

Government adjustment of its spending levels and tax rates to monitor and influence a nation's economy.

Monetary Policy

A government or central bank policy aimed at controlling the money supply and interest rates to influence economic activity.

Short Run

A period in economics during which at least one input is fixed, limiting the capability of the economy or business to adjust to changes in demand or conditions immediately.

Long Run

The long run is a period in economics in which all factors of production and costs are variable, allowing full industry adjustment to changes.