ECONOMICS
SAVING AND INVESTING
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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: -Why is setting a financial goal an important part of the saving process? Determines realistic amount you can save during a specific time period.
Detailed explanation-2: -Through saving money, your money is kept safe, and easy to access should you need it. By investing early over time, your money grows in value, benefiting from the magic of compounding. Remember that investing early, along with compound interest, can result in higher investment amounts versus a late investment start.
Detailed explanation-3: -This means you can get to the money easily. So you can choose which one is appropriate and best to reach your financial goals. Why is it important to understand the features of a savings tool? Account that provides an easy method for withdrawing and depositing money.
Detailed explanation-4: -a. If an individual were to have an emergency, cash needs to be easily accessible. Savings accounts are more liquid than investments because a person can easily get money out of a savings account in a few minutes, while it is harder to get money out of an investment because they are not easily accessible.