EY IRON ASSIGNMENT

What is the primary definition of an investment?

• Spending money for immediate consumption

• Putting money into an asset with the expectation of generating income or appreciation

• Saving money in a bank account without risk

• Purchasing goods for resale

Why is investment considered important for economic growth?

• It reduces government spending

• It creates jobs and stimulates economic activity

• It increases personal consumption only

• It eliminates the need for savings

Which of the following is a method to improve investment returns?

• Diversifying the investment portfolio

• Investing in high-risk assets only

• Avoiding market research

• Keeping all funds in cash

What factor does NOT typically influence an individual's investment decisions?

• Risk tolerance

• Market trends

• Personal interests and hobbies

• Economic conditions

Which of the following is a common type of financial investment?

• Real estate

• Personal belongings

• Daily expenses

• Social events

What is one of the main goals of making investments?

• To avoid financial risks entirely

• To accumulate wealth over time

• To spend all available income immediately

• To eliminate all debts

How does inflation impact investment decisions?

• It has no effect on investments.

• It encourages savings over investments.

• It can erode purchasing power, prompting individuals to invest.

• It guarantees higher returns on fixed deposits.

Which of the following strategies can help manage investment risk?

• Investing all funds in one asset class

• Regularly reviewing and adjusting the investment portfolio

• Ignoring market changes

• Only investing in high-risk ventures

What is a common reason for individuals to seek professional financial advice?

• To gain insights on effective investment strategies

• To spend less time on financial planning

• To eliminate the need for savings

• To avoid all forms of investment

Which of the following is a characteristic of a high-risk investment?

• Low volatility

• Stable income generation

• Guaranteed returns

• Potential for significant losses