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Which statement best describes an example of a short-term investment strategy?A.Mariam invests $4,000 in a mutual fund to create a new income stream.B.Mariam buys an IRA that she can't withdraw from without penalty until she's 59.5.C.Mariam buys a certificate of deposit to set aside money for a down payment on a car.D.Mariam buys 100 shares of stock in a proven company known for solid, dependable performance over time.SUBMITarrow_backPREVIOUS

Question

Which statement best describes an example of a short-term investment strategy?A.Mariam invests $4,000 in a mutual fund to create a new income stream.B.Mariam buys an IRA that she can't withdraw from without penalty until she's 59.5.C.Mariam buys a certificate of deposit to set aside money for a down payment on a car.D.Mariam buys 100 shares of stock in a proven company known for solid, dependable performance over time.SUBMITarrow_backPREVIOUS

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Solution

The statement that best describes an example of a short-term investment strategy is C. Mariam buys a certificate of deposit to set aside money for a down payment on a car. This is because a certificate of deposit (CD) is a type of investment that typically has a fixed term, often a few months to a few years, and is therefore suitable for short-term investment goals such as saving for a down payment on a car.

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