Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Multiple choice-- finances/economics-- help!
Joseph wants to invest money for a very long time. He doesn’t need the money back within any specific timeframe. He would like a very low-risk investment because he doesn’t want to lose any money. Which type of investment will BEST fit Joseph’s needs?
Group of answer choices

certificate of deposit

bond

401k

money market mutual fund


Sagot :

Lanuel

Answer:

certificate of deposit.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

Generally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).

In this scenario, Joseph wants to invest his money for a very long time and would like a very low-risk investment because he doesn’t want to lose any amount of money. Thus, the type of investment which will best fit Joseph’s needs is a certificate of deposit.

A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.

Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.

Additionally, a bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, eliminating the chance of a holder such as Joseph to lose any money.

Answer: it is NOT certificate of deposit

Explanation:

Just used that on the test and it was wrong

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.