The Pros And Cons Of Investments - 732 Words

I found the advice to diversify your investments as much as possible to be the most interesting and useful. It makes sense because as the old saying goes, â€Å"don’t put all of your eggs in one basket†. I also found it interesting that one can receive a good return on their investments even when they diversify their portfolio. This is because when one diversifies their portfolio the stocks that do well in addition to bonds generally over compensate for the stocks that lose capitol. This is opposed to investing entirely in one stock, which could produce very lucrative returns but could also wipe out all of one’s assets. In this scenario the negative is far too extreme to justify the positive. 13. The short explanation as to why mohair farmers†¦show more content†¦GDP is able to be measured accurately unlike other factors in human wellness like happiness. 15. A nation’s GDP is a poor measure of its economic wellbeing and progress because it doesn’t account for all economic activity, it doesn’t account for the biological factors in the economy, and it can be deceiving at first glance. GDP is only able to measure activity where financial transactions take place. This means that things done in the home and community generally go unmeasured even though they can improve the quality of life. GDP is also unable to measure things such as happiness, environmental destruction/preservation, or romantic involvement. GDP can also be deceiving when trying to gauge the wealth of a nation. A nation such as India may have a large GDP when compared to a nation like Monaco. However, the average citizen of Monaco is vastly wealthier and has access to far superior civil services than the average citizen of India. 16. The primary role of the U.S. Federal Reserve is to facilitate the smooth functioning of the economy. The Fed does this by operating as the lender of last resorts, as was seen notably in the 2008 financial crisis when JPMorgan Chase bought out Bear Stearns with Fed funds. The Fed also controls the money supply of the U.S., which influences credit. The Fed can influence the economy by injecting or restricting funds. When funds are injected into the economy interest rates fall encouragingShow MoreRelatedPros And Cons Of Investments838 Words   |  4 Pages18% Goods Most items are under this tax slab which include footwear costing more than Rs 500, Trademarks, goodwill, software, BidiPatta, Biscuits (All categories), flavored refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminum foil, Weighing MachineryRead MorePros And Cons Of Foreign Direct Investment In Russia1113 Words   |  5 Pages Foreign direct investment (FDI) is when an individual or a company in one nation invests in business entities or practices within another nation. Across different nations and sectors, there are multiple restrictions and requirements as to how FDI can be done. 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