Leticia is twenty-two years old and she has all of her savings in a Certificate of Deposit (CD) at the bank that currently pays an annual 1.5 percent yield. The account is protected by the FDIC so it is virtually risk free
She hopes to use her savings for a down payment on a new house in ten years. Inflation in house prices in her area has averaged 4 percent per year. What financial principle does she need to pay better attention to?
A) Nothing happens without a plan.
B) Waste not, want not, smart spending matters.
C) Risk and return go hand in hand.
D) All of the above are correct.
Answer: C
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Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor
Allen uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $11 per pound Direct labor: 4 hours per unit; $19 per hour Allen produced 4,000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 7,500 pounds of direct materials and actual total materials costs were $99,300. What is the direct materials efficiency variance? A) $44,000 U B) $38,500 U C) $44,000 F D) $38,500 F
Vending products to customers without the use of other channel members is:
A) database marketing B) direct marketing or direct response marketing C) indirect marketing D) by-pass marketing