Question

Which of the following investments is the least affected by market influences?

Money market accounts
Stocks
Mutual funds
Real estate

You hear on the news that there is a market correction occurring in the stock market. What does this typically mean?
Stocks fall by 10%
The value of stocks increase by 10%
The market corrects itself by adding 10% to all stocks
None of the above

Answer 1

1. Money market accounts
2. Stocks fall by 10%

Explanation:

1. A money market account is an account at a bank or credit union, typically earning more interest than a passbook savings account. The interest rate is fixed by the institution, so does not have the same short-term fluctuations that the stock or real-estate markets have.

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2. A "correction" is a decline of 10% or more in the market or an individual stock.