Final answer:
The claim that a piggy bank is the only risk-free investment is false, as bank accounts are low-risk, provide quick access to money, are secured by FDIC, and offer high liquidity.
Step-by-step explanation:
The statement that the only risk-free investment is keeping your money in a piggy bank is false. There are indeed low-risk investment options such as bank accounts, which offer several advantages. Bank accounts provide easy access to funds and enhanced security, including the protections offered by the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to $250,000. This means that even if a bank fails, the FDIC guarantees that customers will receive their deposits back up to the covered amount, making bank accounts a secure place for financial investors to keep their money.
Additionally, the money in bank accounts is not simply sitting in a vault; it exists as electronic records that are intertwined with the broader economy. Therefore, while the return on bank accounts may be lower due to their low risk, they are considered safe and highly liquid.