Which of these are considered both short - and long-term investments? Check all that apply. CDs stocks savings accounts mutual funds bonds commodities

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Shirley Moses

10 February, 19:10

Which of these are considered both short - and long-term investments? Check all that apply. CDs stocks savings accounts mutual funds bonds commodities

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Ellen · Answer 1

Long term investments are items on a balance sheet that are intended to be kept for longer than a year, whereas short term investments are liquid assets that are intended to be kept for a shorter period. Everything in the list could be a long term investment, but only some of the items are likely to be used as a short term investment instrument. CDs and savings accounts are possible short term investments, though in the case of CDs it would have to be a CD with a short rate (3 month CDs are common). Some, but not all, stocks and commodities can also be used as short term investments.