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Serhud [2]
3 years ago
12

Isabel and Stuart open a money market account to begin saving for the

Business
1 answer:
dangina [55]3 years ago
5 0

Considering the situation described above, this is an example of a "<u>Long-Term investment strategy."</u>

<h3>What is a Long-Term Investment Strategy?</h3>

Long Term Investment Strategy is a type of investment decision in which the investor hopes to reap the rewards later, usually five years or more.

Given that Isabel and Stuart opened a money market account to begin saving for the college expenses of their newborn daughter, which may take an average of 16 years or more before they reap it, this is an example of a "<u>Long-Term Investment Strategy."</u>

Hence, in this case, it is concluded that the correct answer is "<u>Long-term investment strategy."</u>

Learn more about the Investment strategy here: brainly.com/question/25730859

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when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates

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This is a monetary tool - open-market operation which is a situation in which when the central bank purchases securities inorder to increase the money supply and sells securities to decrease the money supply.

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This is usually done to stimulate the economy i.e to stop the economy from slowing down.

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