ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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saving
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investing
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Either A or B
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None of the above
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Detailed explanation-1: -Other cash instruments carry varying degrees of risk, depending on the creditworthiness of the issuer. Cash is the least risky asset class and has the lowest potential return.
Detailed explanation-2: -Large cap funds that invest in large cap company stocks i.e stocks of well-established companies with sound financials are considered to be the least risky because these stocks are considered to be safer than stocks of mid cap and smaller companies.
Detailed explanation-3: -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-4: -High-yield savings accounts. Series I savings bonds. Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. More items •01-Mar-2023