ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Short-term goals are within a five-year window, while long-term goals are at least five years out. CDs, money market accounts, and traditional savings accounts are best served for short-term goals. Investing is generally reserved for long-term goals so there’s time to withstand performance fluctuations.
Detailed explanation-2: -In general, you only want to play the stock market when you’re investing for a long-term goal. And even if your deadline for using the money is flexible, you need to come to terms with the fact that you’re taking on more risk and might lose money.
Detailed explanation-3: -High-yield savings accounts. Short-term corporate bond funds. Money market accounts. Cash management accounts. Short-term U.S. government bond funds. No-penalty certificates of deposit. Treasurys. Money market mutual funds. 14-Feb-2023