NGPF Personal Finance – Investing Practice Test

You need a brokerage account to buy and sell investments like stocks and funds. A brokerage account is opened with a broker or brokerage firm and provides the platform to place trades, hold your investments, and settle transactions. It can be a cash account or allow margin, and you’ll typically pay commissions or fees. The other terms describe either services or concepts, not an account type: a full-service broker is a service model offering advice, an asset class is a category of investments, and liquidity describes how easily an asset can be turned into cash.