Which of the following might be considered a long-term investment?

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!

Stocks and real estate are often considered long-term investments because they typically have the potential to appreciate in value over an extended period. Investing in stocks means purchasing shares of companies with the intention of holding onto them for years, allowing for growth through price appreciation and potential dividends. Similarly, real estate usually requires a long-term commitment, as property values can increase significantly over time, providing a return on investment when sold. These forms of investment align with the strategy of accumulating wealth through assets that are expected to increase in value rather than generating immediate returns.

In contrast, short-term bonds are generally seen as lower-risk, shorter-term investments, often maturing within a few years. Daily cash expenses and monthly subscriptions are regular financial obligations that do not build wealth and are not investments in the same sense as stocks or real estate.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy