Question

Which investment type typically carries the least risk?
A) Mutual funds
B) Treasury bonds
C) Savings account
D) Individual stocks

Answer 1

Savings account carries a risk-free way to earn some interest on our money.  These accounts earn a nominal amount of interest just for keeping money on deposit in bank. Other than opening your account and depositing your money, this strategy requires almost no effort on ones part.

Answer 2

The savings account carries the least risk.

Option: C

Explanation:

• The saving accounts are bank deposits made by the people in the bank or other financial institutions.  

• These accounts pay interest which is very low but the money of the people is secure in these accounts in the bank.  

• These accounts are flexible and people are able to withdraw money when they require for their needs.  

• The saving accounts are a good method for saving money for a period of short-term or to take care of an emergency.

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