Question

Distinguish between the savings and investment options.

Answer 1

Answer:

Savings,                          Investments

${}$Certificate of deposit    Mutual fund

${}$Account                         Money Market

${}$                                        Gold

Explanation:

Savings is the term used to describe the proportion of ones income not spent or kept for spending at a much later date;

Saving methods includes saving money in deposit accounts, pension savings, and cash savings as well as reducing expenditures

Savings differs from investment in the sense that investments involves more risks than savings

Mutual fund

Mutual fund is a financial resource type involving the bringing together of funds gathered from several investors for investment

Money market

The money market involves buying and selling debt investments that are short terms

Gold

Gold investment is a way of diversifying risk through futures and derivatives and futures contracts

Certificate Deposit

Certificate deposit is a fixed term deposit form of savings that provides an interest on the deposit

Account

Savings and current account are meant for saving funds