If You Have $5,000 to Invest but Will Need to Use

question 46

Multiple Choice

If you have $5,000 to invest but will need to use the funds in three years to buy a home, you should

• A) invest in a diversified stock mutual fund.
• B) buy stocks of relatively stable firms that have low risk.
• C) buy a three-year CD.
• D) put the money in a money market savings account.

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Definitions:

Applied Ethics

A branch of ethics that deals with the practical application of moral considerations to real-world situations and issues.

"Good" Life

A concept referring to a life filled with happiness, fulfillment, and purpose, according to personal, philosophical, or cultural standards.

Absolute Truth

A philosophical concept asserting that certain statements or propositions are consistently true, regardless of variations in perspective or belief.

Right Or Wrong

A concept reflecting moral judgments or decisions based on ethics, law, or personal beliefs.