ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bonds
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Stocks
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Mutual Funds
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Money Market Accounts
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Detailed explanation-1: -Interest rates represent the amount a borrower must pay for the use of money from a lender.
Detailed explanation-2: -Land and real estate investments are considered non-liquid assets because it can take months for a person or company to receive cash from the sale.
Detailed explanation-3: -Borrowing to invest, also known as gearing or leverage, is a risky business. While you get bigger returns when markets go up, it leads to larger losses when markets fall. You still have to repay the investment loan and interest, even if your investment falls in value.
Detailed explanation-4: -Savings = Money set aside for short-term goals. Savings Account = An account you have at a financial institution that helps you accumulate and save money and earn interest at the same time. Share Account = The credit union term for a savings account.