Investing

Question 1

what is wealth and how it is generally measured/

Answer 1

wealth is the value of all resources and possessions a person owns
calculation: Assets - Liabilities = Net worth

Question 2

What are inflation and investing and how are these concepts related?

Answer 2

Inflation: the prices of goods and services going up over time
Investing: Investing involves allocating money to earn a return or profit.
They’re related because inflation erodes the real value of money. Investors seek returns that surpass inflation to preserve and grow their purchasing power. Opting for investments with higher potential returns is a common strategy, although it comes with increased risk.

Question 3

What are the common investments that people use to increase their wealth?

Answer 3

mutual funds, stocks, bonds, cash investments, commodities, cryptocurrencies, Real estate and EFTs

Question 4

what is the relationship between risk and return?

Answer 4

Makes reference to the possible economic loss or gain from investing in securities
(The higher the risk, the higher the return)