Saving vs Investing

What is the main difference between saving and investing according to the passage?

• Saving is for short-term goals, while investing is for long-term growth.

• Saving involves higher risk compared to investing.

• Investing guarantees returns, while saving does not.

• Saving and investing have the same purpose.

According to the passage, saving typically results in:

• Higher returns with high risk

• Lower returns with virtually no risk

• Higher returns with no risk

• Lower returns with high risk

Why do you need both saving and investing strategies to build long-term wealth according to the passage?

• To ensure financial security and growth.

• To avoid financial risks.

• To increase short-term profits.

• To minimize tax liabilities.

How are saving and investing similar?

• Both involve setting aside money for future use.

• Both guarantee a fixed return on investment.

• Both are risk-free financial activities.

• Both require a large initial capital.

How are saving and investing different?

• Saving is for short-term goals, while investing is for long-term growth.

• Saving involves higher risk compared to investing.

• Investing guarantees returns, while saving does not.

• Saving and investing have the same purpose.

What is the account type for saving?

• A) Bank

• B) Brokerage

• C) Stock Market

• D) Real Estate

Fill in the blank: The return on saving is relatively ___.

• low

• high

• moderate

• variable

Fill in the blank: The return on investing is potentially higher or ____.

• lower

• higher

• equal

• unchanged

What is the risk level for saving on FDIC-insured accounts?

• A) High

• B) Medium

• C) Low

• D) None

What is the time horizon for investing?

• Short

• Medium

• Long

• Immediate