Question

Identify five examples of financial investment options available to U.S. households. Identify and briefly explain what will play a role in the choices households make in choosing between these investment alternatives

Answer 1

Five examples of financial investment ARE:

(1) The stock

(2) Bonds

(3) Mutual Funds

(4) Fixed deposits

(5) Gold

The most significant yields among these is the stock market however it is exceptionally unsafe. Individuals who are very hazard taking and know about the stock market would put more in the stock market than different alternatives accessible. The individuals who are less hazard taking would put more in the common subsidizes showcase. For instance, someone needs to put resources into the stock market yet doesn't have such a great amount of time to contemplate which organization would perform better and which won't. For this situation, they can put resources into the common finances where there are subsidize directors who considers the market and oversees where might he/she put and in what extent. Putting resources into a differing portfolio likewise makes a venture less unsafe than putting resources into a couple of organizations. In the event that individuals need a fixed pace of premium and less or zero hazard they can put resources into the security showcase and in the fixed store account in the business banks. Individuals who are less hazard taking can likewise put resources into gold which goes not give an exceptional yield during great monetary condition yet gives an exceptional yield when the financial condition turns unpredictable.

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