If You Are Unwilling to Take Much Risk, You Should

question 27

Multiple Choice

If you are unwilling to take much risk, you should focus on a(n) ________ investment strategy.

• A) aggressive
• B) potentially high-return
• C) moderate
• D) conservative

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, which has been accelerated by advances in transportation and communication technology, with significant implications for economies, culture, and political systems.

Hourly Wages

The amount of money paid to an employee for one hour of work.

Income Effect

Variations in the income levels of individuals or economies and the resultant effects on the demand for goods or services.

Substitution Effect

The economic understanding that as prices rise or incomes decrease consumers will replace more expensive items with less costly alternatives.