ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stocks
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Money Market Accounts
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Corporate bonds
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real estate
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Detailed explanation-1: -The Government of India issues treasury bills to raise funds for a period of up to 365 days. Since these are issued by the government, they are considered to be very safe. However, lower risks also translate into lower returns which is the case with treasury bills too.
Detailed explanation-2: -T-bills are considered the safest possible investment and provide what is referred to as a “risk-free rate of return, ” based on the credit worthiness of the United States of America. This risk-free rate of return is used as somewhat of a benchmark for rates on municipal bonds, corporate bonds and bank interest.
Detailed explanation-3: -With all investments, you run the risk of losing money. Money market funds, however, are widely considered one of the safest, lowest-risk and least volatile investment options.
Detailed explanation-4: -There is little risk associated with money market funds. The Securities and Exchange Commission (SEC) mandates that only the highest credit rated securities are available in money market funds.
Detailed explanation-5: -Bank Fixed Deposit (FD) Public Provident Fund (PPF) National Pension Scheme (NPS) Gold. 7.75% GoI Savings Bond. Recurring Deposit (RD) National Savings Certificate (NSC) Post Office Monthly Income Scheme (POMIS) 20-Jan-2023