What are some characteristics of short-term investments? Check all that apply.They usually last for less than a year.They are considered low risk.They typically include both stocks and bonds.They typically help investors save for retirement. They can include savings accounts and CDs.
Answer
A
They usually last for less than a year.
B
They are considered low risk.
C
They typically include both stocks and bonds.
D
They typically help investors save for retirement.
E
They can include savings accounts and CDs.
Explanation
Short-term investments are generally held for less than a year and tend to prioritize preserving money, so they are considered relatively low risk. Savings accounts and certificates of deposit (CDs) are common examples. Stocks and bonds can vary in risk and are not typically what defines short-term investments, while saving for retirement is usually a long-term goal.
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