ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Savings tools are not secure because they have a high risk of losing money.
|
|
|
Savings tools are secure because they are protected by the U.S. government against loss.
|
|
|
Savings tools are very secure because there are not risks involved with saving or investing.
|
|
|
None of the above is true. It would be safer to keep the money at home in a shoe box.
|
Detailed explanation-1: -Which of the following statements correctly describes the security level of savings tools? Savings tools are secure because they are protected by the U.S. government against loss.
Detailed explanation-2: -A checking account is the most liquid of all the savings tools because the money is considered cash. The funds are easily accessed through a check, an automated teller machine (ATM), a debit card, the telephone, or Internet. Checking accounts are available at depository institutions.
Detailed explanation-3: -Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately.
Detailed explanation-4: -Domestic stocks. Bonds. Short-term investments. * You could lose money by investing in a money market fund. International stocks. Sector funds. Commodity-focused funds. Real estate funds. More items