Which of the following is true about investments?

Question

Quizplus · Accepted Answer

The length of time for which money is invested is an important factor as it determines the potential returns and the level of risk involved in the investment. The longer the investment period, the higher the potential returns but also the higher the risk. Therefore, it is important to choose an investment with a time frame that aligns with your financial goals and risk tolerance.

Choice A is incorrect as higher income may lead to a higher need for investment to achieve financial goals or enhance wealth.

Choice B is incorrect as keeping money idle does not generate any returns, which means there is no investment, but rather a loss of potential growth.

Choice C is incorrect as higher returns on investment often lead to the accumulation of more wealth, not less.

Choice D is incorrect as investment is not measured by debt incurred, but rather the amount of money invested in assets that generate a return.

Which of the Following Is True About Investments