Final answer:
True, those early in their career needing safety and liquidity should consider money market investments which offer low risk and high liquidity.
Step-by-step explanation:
True, investors in the early stages of their career path with the need for safety and liquidity should consider money market investments.
The bottom line on bank accounts and similar investments is they offer low risk and high liquidity, although they usually have a low rate of return.
This aligns well with the needs of those just starting out who may require easy access to their funds and a higher priority on preserving capital rather than seeking high returns.
Investing in stocks or mutual funds can provide a high rate of return over time, but these come with higher risks and might not be suitable for investors prioritizing safety and liquidity.
On the other hand, money in bank accounts is not only highly accessible but is also insured by the FDIC up to $250,000, ensuring a high degree of safety for the investor's capital.