You Have $3,000 to Invest, but Will Need the Funds

question 99

Multiple Choice

You have $3,000 to invest, but will need the funds in a year to make a tuition payment. You should

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

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Definitions:

Functionalism

A theoretical perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Lower Income

A financial status typically associated with earning below the median household income, leading to limited economic resources and purchasing power.

Upper Income

A descriptor for individuals or households that earn significantly more than the average income level, often associated with higher socioeconomic status.