ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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safe, reliable, convenient
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earns a higher return of interest
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earns a small amount of interest
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insured by the FDIC
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Detailed explanation-1: -Saving provides a financial “backstop” for life’s uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established, savings can also provide the “seed money” for higher-yielding investments such as stocks, bonds, and mutual funds.
Detailed explanation-2: -Benefits of ROI It reflects how well the assets have been utilized to earn profits, this encourages the company to make optimum use of assets. Also, it ensures that assets are acquired only when they are sure to give returns.
Detailed explanation-3: -Saving is ideal for smaller, typically shorter-term goals like paying for a car or a house downpayment, travel, or an emergency fund. Investing, on the other hand, may help us reach our long-term goals, such as paying for a child’s education, retirement, or property purchase.
Detailed explanation-4: -Saving Account. Liquid Funds. Short-Term & Ultra Short-Term Funds. Equity Linked Saving Schemes (ELSS) Fixed Maturity Plans. Treasury Bills. Gold.