ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a regular savings account
|
|
|
US Government Savings Bonds
|
|
|
Mutual funds
|
|
|
Money Market account
|
Detailed explanation-1: -Identify the investment:-the investor loans money to a city or county government, or a company-money is repaid after a certain date, plus interest is paid-generally considered a safe investment, although not insured by the FDIC. This is bonds.
Detailed explanation-2: -Which of the following is NOT a recommended strategy when investing in stocks? avoid investing solely in individual stocks. Many financial advisors recommend that investors diversify their investment portfolio.
Detailed explanation-3: -What is a mutual fund? Mutual funds offer investors the opportunity to group their money together and buy stocks, bonds and other investments “mutually” to invest in a common objective, such as generate current income or seek long-term growth.