Which financial product has the most predictable income? (2024)

Which financial product has the most predictable income?

Most certificates of deposit (CDs) are issued with an interest rate that is fixed at a specified rate for the entire term of the deposit. The main virtue of a fixed-rate CD is its predictability.

What has the most predictable income?

Income from the US saving bonds is one of the most predictable incomes because they are government bonds, and return is known at the time of investment. If the bond is deeply discounted, the difference between the issue price and redemption value is the return.

Which financial product has the most predictable income quizlet?

Which financial product has the most predictable income? c. Certificate of Deposit (CORRECT!) A person is depositing $20 in cash and a check for $50.

What financial product pays the highest rate of interest?

CDs are best for individuals looking for a guaranteed rate of return that's typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.

Which financial product is guaranteed to be worth more in the future?

Which financial product is guaranteed to be worth more in the future? Certificate of Deposit. Rationale: Certificates of Deposit are guaranteed to earn at a specified interest rate for a fixed period of time.

Which financial product has the most predictable income 2 points?

The bank customer pays a small annual rental fee to the bank for use of the safe-deposit box. Which financial product has the most predictable income? Certificate of deposit, Most certificates of deposit (CDs) are issued with an interest rate that is fixed at a specified rate for the entire term of the deposit.

What is the strongest predictor of occupation income and wealth?

Research indicates that the level of education is strongly related to both income and wealth.

Which of the following is a predictable source of investment income?

By investing in fixed income securities such as mortgages, bonds and preferred shares, fixed income funds can provide a predictable source of income and help to preserve capital.

Which of the following investments would provide the most predictable source of income?

Fixed-income investments, such as government and corporate bonds, can provide a steady, predictable source of income, often with lower risk than other investments.

What is one of the strongest predictors of income and wealth in later life quizlet?

Feedback: Education is one of the strongest predictors of occupation, income, and wealth in later life. In addition, on average, a college education pays for itself over a lifetime of increased earnings.

What earns you the most interest?

Which bank gives 7% interest monthly?

As of April 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

What type of interest earns the most?

CDs from online institutions and credit unions tend to pay the highest rates.

What is the safest investment with the highest return?

Where can I get 10 percent return on investment?

Which of the following investment products is guaranteed by the federal government?

“Treasuries” are issued by the federal government. Unlike corporate or municipal bonds, they are backed by the “full faith and credit” of the U.S. government, which guarantees that interest payments will always be made and the bonds redeemed at maturity.

Which financial product can you buy for $25 is safe and will be worth $50 at future date?

Which financial product can you buy for $25, is safe, and will be worth $50 at a future date? Reason : Series EE savings bonds, which are issued and backed by the U.S. Treasury, are purchased for one-half of their face value.

What is the largest source of income for banks?

The primary source of income for banks is the difference between the interest charged from the borrowers and the interest paid to the depositors. Banks usually collect higher interest from loans than the interest they provide for deposits.

What are the predictors of income?

Many factors are related to how much money a person will earn, including age, occupation, education, gender, ethnicity and even height.

Which of the following is a strong predictor of ones occupation income and wealth in later life?

The correct answer is one's educational attainment.

What is the single greatest predictor of a person's lifetime earnings?

"The key message is a person's annual earnings are a better measure of their long-term earnings than their detailed occupation," he said.

What investment is the safest source of income?

The Bottom Line

Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.

Which type of investment would have the most risk?

Explanation: Investment in stocks is riskier compared to investment in other forms like government bonds, which are usually risk-free securities, certificates of deposit, cash, and equivalents.

Which debt fund gives highest return?

What is the best investment for generating income?