All of the Following Statements Are Considered to Be Good

question 30

Multiple Choice

All of the following statements are considered to be good advice for a potential investor starting an investment program except:

• A)Work to balance your budget.
• B)Increase credit purchases to conserve cash.
• C)Establish specific and measurable investment goals.
• D)Start an emergency fund.
• E)Establish a line of credit.

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Definitions:

Capital Goods

Long-term assets that are used in the production of other goods and services, such as buildings, machinery, and equipment, which are not consumed in the production process.

Borrows

refers to the act of obtaining money, goods, or services in exchange for a promise of future repayment.

Financial System

A network of institutions, markets, instruments, and mechanisms that facilitate the exchange of funds and the allocation of resources in an economy.

Certificate Of Indebtedness

A government or corporate bond that acknowledges a debt and the obligation to repay it with interest by a specified date.