Lesson 21 - Alternate Investments Flashcards
What are alternate investments?
Investments that are not traditional stocks, bonds, or cash, such as real estate, cryptocurrencies, and collectibles.
True or False: Cryptocurrencies are considered a stable investment.
False
What is a bond?
A fixed income investment where an investor loans money to an entity for a defined period at a fixed interest rate.
Which of the following is NOT an alternate investment? A) Stocks B) Real Estate C) Cryptocurrencies D) Commodities
A) Stocks
What is the primary risk associated with investing in cryptocurrencies?
High volatility and potential for significant loss.
True or False: Property investments can generate income through rent.
True
What does ROI stand for in investment terms?
Return on Investment
Name one advantage of investing in shares.
Potential for high returns.
What is the main purpose of bonds in a portfolio?
To provide steady income and reduce overall risk.
Fill in the blank: The price of cryptocurrencies can be influenced by __________.
market demand and speculation
True or False: Real estate investments are always liquid.
False
What is a key characteristic of property investments?
They provide both potential appreciation and rental income.
Multiple Choice: What is a common type of bond? A) Corporate B) Residential C) Commercial D) All of the above
A) Corporate
What is diversification in the context of investing?
Spreading investments across various assets to reduce risk.
True or False: Shares represent ownership in a company.
True
What is one potential downside of investing in real estate?
High initial capital requirement.
Fill in the blank: Investing in __________ can be risky due to lack of regulation.
cryptocurrencies
What is the main benefit of bonds compared to stocks?
Lower risk and more predictable returns.
