3
QuizMultiple Choice

Investment Strategies

Question 3 • * HSA 26-27 Economics

A couple has decided to increase their income from investments for when they retire in twenty years. Which is the best way they can accomplish that goal?

Answer
A
by enrolling in a 401k and investing in the stock market
B
by opening a savings account and investing in commodities
C
by buying CDs and US government bonds
D
by opening an IRA and investing in a new business

Explanation

With twenty years until retirement, they have time to pursue long-term growth by investing in stocks. Enrolling in a 401(k) and investing in the stock market is the best choice for increasing investment income over that time horizon. Savings accounts, CDs, and government bonds generally emphasize safety and predictable returns, while investing in a new business can be especially risky.

AI-written and checked against the verified answer.

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