QUESTION 1 of 10: True or False: Stocks and mutual funds are generally safer investments than a savings account.

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07-05-2021
Business

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QUESTION 1 of 10: True or False: Stocks and mutual funds are generally safer investments than a savings account.

Sagot :

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Francocanacariidn Francocanacariidn · Answer 1 · 2021-05-12T21:02:25-04:00

Answer:

False.

Explanation:

Stocks and mutual funds are by no means safer investments than savings accounts, because they have a greater risk because they are tied to the performance of a third entity: thus, stocks depend for their value on the performance of the company, while mutual funds depend on the performance of the company that manages these investments. In contrast, savings accounts have a less variable rate of return, which is determined by banks based on the interest rate stipulated by the Federal Reserve.

Sagot :

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