Which of the Following Statements About Investments Is True

question 77

Multiple Choice

Which of the following statements about investments is true?

• A) As income increases, the need for investment planning decreases.
• B) Keeping money idle is a form of investment.
• C) Higher returns on investment will lead to the accumulation of less wealth.
• D) Investment is measured by the amount of debt incurred.
• E) The length of time for which money is invested is important.

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Definitions:

Income

The financial earnings received by a person or household from various sources like work, investments, or benefits, typically measured on an annual basis.

Born to Wealth

Indicates individuals who inherit considerable financial resources or assets from their families, thus starting life with significant economic advantages.

Life Span

The maximum or typical length of time an organism is expected to live.

Amount

The quantity, total, or extent of something, often measured in numbers or volume.