Advanced Diploma of Financial Planning (ADFP) Practice Test

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Excel in the Advanced Diploma of Financial Planning Test with comprehensive quizzes. Study with detailed questions, hints, and explanations. Prepare for success now!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is a common investment goal?

Building a time machine
Purchasing a home
Winning the lottery
Starting a new currency

The correct answer is: Purchasing a home

Purchasing a home is a common investment goal because it represents a significant financial commitment that many individuals and families aim to achieve. Homeownership often symbolizes stability and a long-term investment opportunity, as properties typically appreciate over time. Additionally, buying a home allows individuals to build equity, which can serve as a financial asset for future needs, enhancing overall wealth. Building a time machine and starting a new currency are not feasible or practical investment goals within the current economic framework. While winning the lottery might be seen as a way to achieve financial freedom, it is more of a chance event rather than a strategic investment goal. People generally engage in real estate investment for its reliability and potential for generating wealth over time, making the objective of purchasing a home both realistic and grounded in sound financial planning principles.