ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following investments would carry the most risk?
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Checking account
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Savings account
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Savings bond
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Stock Market
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Explanation:
Detailed explanation-1: -Answer and Explanation: Correct answer: Option E) Stocks. Explanation: Investment in stocks is riskier compared to investment in other forms like government bonds, which are usually risk-free securities, certificates of deposit, cash, and equivalents.
Detailed explanation-2: -While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking.
Detailed explanation-3: -Answer and Explanation: The correct options is: a) Common stocks. Commons stocks are highly risky because they are last to receive cash flows hierarchically and the dividend payment is not guaranteed.
There is 1 question to complete.