You Have Just Graduated from College and Landed Your First

question 7

Multiple Choice

You have just graduated from college and landed your first job. However, you realize that it is never too early to begin investing for your future needs. Which of the following investment strategies would be most likely to help you accumulate significant wealth over the long haul?

• A) putting all of your money into a government-insured savings account with a bank
• B) investing mainly in a diversified set of common stocks
• C) investing in the preferred stocks of a few well-established corporations
• D) investing mainly in a broad group of corporate bonds

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Definitions:

Extend Credit

The provision of goods or services with the expectation that payment will be made in the future.

Creditworthiness

An assessment of the likelihood that a borrower can repay a loan or meet financial obligations.

Collection Agency

A business that pursues payments of debts owed by individuals or businesses.

Collection Practices

Strategies and procedures that businesses and organizations use to manage and recover overdue accounts receivable or debts.