ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a down payment
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risk
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taxes
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None of the above
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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: -Investing has the potential for higher returns than savings accounts, the ability to grow your wealth over time through compounding and reinvestment, and the opportunity to help you achieve long-term financial goals, such as saving for retirement or buying a house.
Detailed explanation-3: -The difference between saving and investing Saving can also mean putting your money into products such as a bank time account (CD). Investing-using some of your money with the aim of helping to make it grow by buying assets that might increase in value, such as stocks, property or shares in a mutual fund.
Detailed explanation-4: -Draw a personal financial roadmap. Evaluate your comfort zone in taking on risk. Consider an appropriate mix of investments. Be careful if investing heavily in shares of employer’s stock or any individual stock. Create and maintain an emergency fund. More items