Question

What are two reasons to save instead of invest?

Answer 1

Safety and liquidity

Answer 2

The correct answers are A) safety and B) liquidity.

Two reasons to save instead of invest are safety and liquidity.

When you are deciding what to do with your money you have to make a decision between making an investment or save your money in the bank. If you have a bank account to save your money, it is secure, it is going to pay you low interests but you will have liquidity, the possibility of withdrawal the money any time. If you are thinking about an investment, you have to consider that it is going to require a large amount of money, it is risky and liquidity is not an option. The investment can last months and in some cases, years.