What is the primary goal of investing?

Prepare for the Utah Financial Literacy State Test. Dive into interactive questions, complete with explanations and tips, to ensure your success. Boost your financial skills and ace the exam!

The primary goal of investing is to increase wealth over time for long-term financial goals. This concept underscores the purpose of investing as a strategy to grow your financial resources, whether for retirement, purchasing a home, funding education, or other significant milestones in life.

By committing funds to various investments, individuals aim to benefit from the potential appreciation of assets, such as stocks, bonds, or real estate, over an extended period. This approach aligns with the understanding that the market has historically yielded higher returns over time compared to holding cash or other less productive assets.

Additionally, investing allows individuals to take advantage of compounding interest, where returns generate additional returns, fueling further growth in wealth over the years. Thus, the focus is not only on immediate gains but on building a robust financial future, making option C the most accurate representation of the primary goal of investing.

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