ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Identify the investment:-insured by the FDIC-lowest interest rate of all investments-in most cases, you can make up to 3 withdrawals per month
A
money market
B
traditional savings accounts
C
ETFs
D
CDs
Explanation: 

Detailed explanation-1: -A profit earned by owning stocks is a dividend. Identify the investment:-insured by the FDIC-lowest interest rate of all investments-in most cases, you can make up to 3 withdrawals per month. This is a traditional savings accounts. Savings accounts, Bonds, ETFs, Individual stocks.

Detailed explanation-2: -Savings, CDs, Money Market Accounts, and Bonds Some that are considered the safest also generate the least interest (or returns). The investment type that typically carries the least risk is a savings account. CDs, bonds, and money market accounts could be grouped in as the least risky investment types around.

Detailed explanation-3: -A money market mutual fund is a type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk. Money market mutual funds are among the lowest-volatility types of investments.

Detailed explanation-4: -Answer and Explanation: Correct answer: Option E) Stocks. Explanation: Investment in stocks is riskier compared to investment in other forms like government bonds, which are usually risk-free securities, certificates of deposit, cash, and equivalents.

Detailed explanation-5: -Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. Money market accounts. Fixed annuities. More items •01-Mar-2023

There is 1 question to complete.