Question

Which type of investment would be an example of an investment at point A?

a commodity
a savings account
a mutual fund
a stock

Answer 1

A savings account, since the point indicates low risk and low returns

Explanation:

• The most favored choice for investing or excess funds is a savings bank account. These accounts are often known as the safest way to keep the emergency fund secure. However, from an investment point of view, savings bank accounts are insufficient because the return rate is low
• Stocks and commodities experience huge variations in prices, owing to its highly volatile nature. Nevertheless investors can take benefit of these price differences to make profits. Stocks and commodities are high risk and high return investments
• Mutual funds, provide balanced income as it is a type of investment comprising a pool of money collected from several investors to invest in securities such as money market instruments, bonds, stocks,  and other assets. The returns and risk depends on the pools of assets in a mutual fund. However, they are less riskier when compared to stocks and commodities, and provide better returns than savings account.

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List the various types of investments in the securities market ...

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Answer 2

Answer:

saving account

Explanation

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