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7 January, 09:57

Choose all that apply. Select the differences between saving and investing. Investing is riskier, but has the potential for a higher rate of return. Savings accounts are not federally insured. Some investments earn dividends. Savings accounts earn interest. To collect money from an investment, it is necessary to sell the investment

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  1. 7 January, 11:07
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    Investing is riskier but has the potential for a higher rate of return while savings accounts earn interest
  2. 7 January, 11:33
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    The answers are:

    Investing is riskier, but has the potential for a higher rate of return.

    Investments are much more volatile compared to saving, since the value of your investment would quickly response on market condition. Saving on the other hand, would either stay stagnant or show a slow but steady growth.

    Some investments earn dividends.

    The type of investment that would earn dividends is called stock. The dividend would be based on the amount of income that the company where you invest earn within 1 year.

    Savings accounts earn interest.

    But the amount of interest would considerably lower compared to investments.

    To collect money from an investment, it is necessary to sell the investment

    In free market system, such investment can be sold in the free market. Those who want to earn profit need to buy the investment at a low price and sell it at higher price.
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