You Have the Broadest Choice of Investment Alternatives for Your

question 56

Multiple Choice

You have the broadest choice of investment alternatives for your _____________.

• A) traditional IRA
• B) Roth IRA
• C) 401k plan
• D) taxable savings account

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Definitions:

Society

A community of people living in a more or less ordered community, often characterized by its laws, customs, and organizations.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating behavior of the marketplace, where individual self-interests unintentionally benefit society.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on capitalism and the invisible hand of the market.

Free Market

A system of voluntary exchange in which every agent is free to produce, buy, and sell “as the market will bear,” without interference or standards set by any outside authority.