Your neighbor asks you to invest $500 in her new business. You want to invest but are concerned because your neighbor has not had any business experience. How can you offset your risk?
A. Ask for a ...
... high interest rate in exchange for the loan.
B. Invest your $500 in a certificate of deposit.
C. Use the $500 to open a savings account.
D. Lend you neighbor the $500 and keep your fingers crossed.
The answer is A. Ask for a high interest rate in exchange for the loan.
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