ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investing
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Compounding
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Saving
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Evaluating
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Detailed explanation-1: -What is saving money? If you restrict your expenses and keep the unspent money in your own custody for the purpose of accumulating it, is called saving money. Savings can be done at any age.
Detailed explanation-2: -Budget. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan.
Detailed explanation-3: -Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains.
Detailed explanation-4: -Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio.
Detailed explanation-5: -Money market funds are intended to offer investors high liquidity with a very low level of risk. Money market funds are also called money market mutual funds.