An ___ is an investment such as a stock or real estate that is higher risk, which entitles you to actual ownership of all or part of a property. A ___ is an investment such as a bond or a savings account in which other groups borrow money form you and promise to pay it back with interest. A ___ is an investment that is as good as cash, such as a money market account.
a. lending investment
b. ownership investment
c. cash equivalent
a. ownership investment
b. lending investment
c. cash equivalent
The correct answers are:
a. ownership investment
b. lending investment
c. cash equivalent
To determine the correct terms for these investment types, we need to understand the characteristics of each.
1. Ownership Investment: This refers to an investment where you have actual ownership of a property or asset. It involves higher risks and potential rewards. Examples of ownership investments include stocks, real estate, and collectibles.
2. Lending Investment: This refers to investments where you lend money to individuals, businesses, or governments, and they promise to pay it back with interest. Lending investments are generally considered lower risk compared to ownership investments. Examples of lending investments include bonds, savings accounts, and certificates of deposit (CDs).
3. Cash Equivalent: This refers to an investment that can be easily converted into cash without any significant loss of value. Cash equivalents are highly liquid and considered very safe investments. Examples include money market accounts, treasury bills, and short-term government bonds.
By understanding the definitions and characteristics of these investment types, you can easily determine the correct terms for each category.
b. ownership investment
c. cash equivalent
a. lending investment