Which event might have a negative impact on your net worth?A.You move your long-term investments into bonds.B.You pay off the mortgage on your house.C.The bank sends you the title to your car.D.The stocks you own lose value when the market declines.
Question
Which event might have a negative impact on your net worth?A.You move your long-term investments into bonds.B.You pay off the mortgage on your house.C.The bank sends you the title to your car.D.The stocks you own lose value when the market declines.
Solution
The event that might have a negative impact on your net worth is D. The stocks you own lose value when the market declines.
Here's why:
A. You move your long-term investments into bonds: This might not necessarily have a negative impact on your net worth. Bonds are generally considered safer than stocks, although they may offer lower returns.
B. You pay off the mortgage on your house: This would generally have a positive impact on your net worth. Once you pay off your mortgage, you own your house outright, which increases your assets.
C. The bank sends you the title to your car: This would also generally have a positive impact on your net worth. Owning your car outright means
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