ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Savings is used to pay for long-term goals, while investing is used to pay for emergencies.
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Savings is less liquid than investing.
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Savings provides the foundation for financial security, while investing is used to pay for long-term goals, such as retirement
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Savings and investing both help a person stay at their current level of living.
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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: -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-3: -Diversification is most often done by investing in different asset classes such as stocks, bonds, real estate, or cryptocurrency.