Question

Which of the following statements about investing is

TRUE?

A.On average, putting money in a savings account
earns a higher return than
investing money in the
stock market.

B.Investing is riskier than putting money in a savings
accounts.


C.Investing is best for short-term financial goals.

D.Investing is a guaranteed way to make money.

Answer 1

B.Investing is riskier than putting money in a savings

accounts.

Step-by-step explanation:

Savings refers to putting money aside for future consumption. Most firms and individuals save in savings accounts because they are safe and secure. Saving is considered risk-free, meaning the money saved is highly-unlikely to be lost.

Investing is engaging in commercial activities to make profits and grow wealth. Money put into an investment project is active, unlike the funds in a savings account. Investing has higher returns than savings but is also riskier. Money saved earns little interest on will remain the same but money invested can generate high profits or suffer losses.