Final answer:
Short-term investment options like savings and checking accounts offer low-risk opportunities for investors, with relatively low returns compared to other investment strategies. These options provide easy access to funds and are considered to be safe.
Step-by-step explanation:
Short-term investment options refer to financial instruments that have a relatively short maturity period, typically less than one year. These options are considered to have low risk and offer investors the opportunity to earn returns on their investment in a short period of time. Some examples of short-term investment options include savings accounts and checking accounts.
Savings accounts are offered by banks and allow individuals to deposit their money and earn interest on it. These accounts are relatively safe and offer easy access to funds. However, the returns or interest rates on savings accounts are usually lower compared to other investment options.
Checking accounts, on the other hand, are primarily used for daily transactions and do not typically offer interest. These accounts provide quick access to funds, allowing individuals to withdraw money easily using checks, debit cards, or online transfers.
In summary, short-term investment options like savings and checking accounts provide low-risk opportunities for investors to earn returns on their funds. However, the returns on these options are generally lower compared to other investment strategies.