Jim Has Managed to Save $1,000 and Wants to Start

question 48

Multiple Choice

Jim has managed to save $1,000 and wants to start investing.The financial markets make him nervous as he has very limited financial resources.Which one of the following types of funds is probably best for Jim at this time?

• A)sector
• B)aggressive growth
• C)social conscience
• D)high yield
• E)balanced

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Definitions:

Unit Variable Expenses

Costs that vary directly with the volume of production or sales per unit.

Fixed Expenses

Costs that do not change with the level of production or sales volume, such as rent and salaries.

Variable Expenses

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.