ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The five most common types of savings tools are checking accounts, savings accounts, money market deposit accounts, certificates of deposit, and savings bonds. It is important to determine which savings tools are appropriate to assist in the attainment of personal financial goals.

Detailed explanation-2: -There are four common types of savings tools: checking accounts, savings accounts, money market deposit accounts, and cerficates of deposit, ordered from lowest to highest rates of interest typically paid.

Detailed explanation-3: -Pick the right tools Look carefully at all the options and consider balance minimums, fees, interest rates, risk and how soon you’ll need the money so you can choose the mix that will help you best save for your goals.

Detailed explanation-4: -Over many decades, the investment that has provided the highest average rate of return has been stocks. But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments.