Question

In the financial world, what does safety mean?

O You will lose all your money.
The chance of losing your money in an investment is fairly small.
OIt's safe to cross the street.
O You cannot be certain about the profit of your investment.

Answer 1

In the financial world, safety refers to the likelihood of losing your money in an investment. It signifies a lower level of risk.

Step-by-step explanation:

In the financial world, safety refers to the likelihood of losing your money in an investment. It means that the chance of losing your money is fairly small. It does not guarantee complete protection of your investment, but it signifies a lower level of risk.

For example, if you invest your money in a government bond, it is considered a safe investment because the chances of default or loss of principal are minimal. However, if you invest in a start-up company, the risk is higher, and the safety of your investment is lower.

Therefore, in the financial context, safety pertains to the level of risk associated with an investment and the probability of losing money.

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