Multiple Select QuestionSelect all that apply"Safe" investments include:Multiple select question.select mutual funds.certificates of deposit.new company stocks.penny stocks.government bonds.
Question
Multiple Select QuestionSelect all that apply"Safe" investments include:Multiple select question.select mutual funds.certificates of deposit.new company stocks.penny stocks.government bonds.
Solution
The "safe" investments include:
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Mutual funds: These are investment vehicles that pool together funds from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. Because they are diversified, they are considered safer than investing in individual stocks or bonds.
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Certificates of deposit: These are time deposits with banks or credit unions that offer a fixed interest rate over a specified period of time. They are considered very safe because they are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.
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Government bonds: These are bonds issued by a government to support government spending and obligations. They are considered safe because they are backed by the full faith and credit of the government that issued them.
New company stocks and penny stocks are not typically considered "safe" investments. New company stocks are risky because the company has not yet established a track record of success, and penny stocks are risky because they are often subject to price manipulation and lack liquidity.
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