Question 1 • 2027 Ignite Financial Literacy-Personal Finance - EL3403
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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