ECONOMICS (CBSE/UGC NET)

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ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What investment is described below?* Your money is combined with money from other investors to buy a variety of investments.* Your money is not insured, but diversification reduces the risk of loss.* You may withdraw your money at any time without paying a penalty; you will be paid what your investments are worth on the day of withdrawal.* You will be charged fees for the management of the investments.
A
Mutual funds
B
Government bonds
C
Certificates of deposit
D
Money Market Accounts
Explanation: 

Detailed explanation-1: -Investment includes bonds, stocks, PPF amongst others, which helps in growing money and providing an additional source of income. As investment helps us in growing our money over a certain period of time, there is a certain risk accompanying the investment.

Detailed explanation-2: -An investment can refer to any mechanism used for generating future income. This includes the purchase of bonds, stocks, or real estate property, among other examples. Additionally, purchasing a property that can be used to produce goods can be considered an investment.

Detailed explanation-3: -A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio.

Detailed explanation-4: -Growth investments. Shares. Property. Defensive investments. Cash. Fixed interest.

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