ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is a short term savings/investing option?
A
Stocks
B
Mutual Funds
C
Bonds
D
Savings Account
Explanation: 

Detailed explanation-1: -Best investments for short-term money Bank products and Treasurys are safest, corporate bond funds slightly less so. CDs and bonds are relatively low risk compared to stocks, which can fluctuate a lot and are high risk.

Detailed explanation-2: -The definitions of long and short are relative, but short-term savings is typically money you’ll spend six months to three years out, and long-term savings is usually money you won’t touch for more than three years.

Detailed explanation-3: -Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills.

Detailed explanation-4: -What are some examples of short-term investment? Short-term investment examples include savings accounts, fixed deposits, liquid mutual funds, ultra-short-term debt funds, post office deposits, etc. Any investment which allows you to invest quickly and withdraw anytime can be a short-term investment.

There is 1 question to complete.