ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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keeping your money in a jar by the bed because banks are not safe.
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putting your money in a savings account because it is insured.
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putting your money into a mutual fund because it is diversified.
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buying stock only in the company where you work.
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Detailed explanation-1: -The best strategy for long-term investment is a diversified portfolio of stocks and bonds as it offers a balance of growth and income potential. This can be achieved through a combination of index funds and actively managed funds, or through individual securities.
Detailed explanation-2: -When to invest money. If you don’t need the money for at least five years (or longer) and you’re comfortable taking some risk, investing the funds will likely yield higher returns than saving. If you’re eligible for an employer-match in your retirement account such as a 401(k).
Detailed explanation-3: -Match your investments to your goals. Spread your ‘eggs’ among multiple baskets. Don’t try timing the market. Set up a purchase plan–and stick with it. Keep tabs on your progress.