Which of the Following Steps Should Be Completed Before Starting

question 17

Multiple Choice

Which of the following steps should be completed before starting an investment program?

• A) Pick out at least two stocks or bonds to invest in.
• B) Work to balance your budget.
• C) Save at least $10,000 to invest.
• D) Invest in certificates of deposit.
• E) These all are completed at the same time.

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Definitions:

Moral Hazard

The risk that one party to a transaction has incentives to take undue risks because the costs incurred will not be fully borne by that party.

Homeowner's Insurance

An insurance policy that provides financial protection against disasters, theft, and accidents that may occur in one's home or on their property.

Locking Possessions

The act of securing personal or valuable items to prevent unauthorized access or theft.

Liability

A legal obligation or responsibility that can arise from contracts, torts, or other legal matters, potentially resulting in the need to pay damages or perform specific acts.