You Have $3,000 That You May Need Any Day to Replace

question 74

Multiple Choice

You have $3,000 that you may need any day to replace the furnace in your house. Which of the following would be the best place to put the $3000?

• A)A one-year fixed-rate GIC earning 4 percent
• B)A common stock mutual fund earning 9 percent
• C)A savings account earning 2 percent
• D)An ETF earning 5 percent

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Definitions:

Investments

Assets purchased with the expectation that their value will grow or generate income.

Quarterly

Taking place four times a year, or every quarter.

Withdrawals

The act of taking money out of an account, fund, or similar financial vehicle.

Invest

To allocate money in the expectation of some benefit in the future, usually through the purchase of assets with the hope that they will increase in value.