ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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buying stocks
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putting money in a savings account.
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investing in Savings Bonds.
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putting your money in a five year CD.
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Detailed explanation-1: -The biggest difference between saving and investing is the level of risk taken. Saving typically results in you earning a lower return but with virtually no risk. In contrast, investing allows you the opportunity to earn a higher return, but you take on the risk of loss in order to do so.
Detailed explanation-2: -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-3: -Switch to a high-interest savings account. Consider a rewards checking account. Take advantage of bank bonuses. Try a money market account. Check with your local credit union. More items •16-Dec-2022
Detailed explanation-4: -Savings Accounts. High-Yield Savings Accounts. Certificates of Deposit (CDs) Money Market Funds. Money Market Deposit Accounts. Treasury Bills and Notes. Bonds.