1. How does investing in the stock market differ from putting money in a 1 point savings account at a bank? Investing is always a less risky option than saving Investing is best for short-term situations like emergency funds; saving is best for the long-term Investing typically earns between 1-2% while saving generally earns between 5-7% Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies

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1. How does investing in the stock market differ from putting money in a 1 point savings account at a bank? Investing is always a less risky option than saving Investing is best for short-term situations like emergency funds; saving is best for the long-term Investing typically earns between 1-2% while saving generally earns between 5-7% Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies

Answer 1

The question is asking about the differences between investing in the stock market and putting money in a savings account at a bank. The options provided are:1. Investing is always a less risky option than saving: This statement is incorrect. Investing in the stock market is generally considered more risky than putting money in a savings account because the value of investments can fluctuate based on market conditions, and there is a risk of losing the principal amount invested.2. Investing is best for short-term situations like emergency funds; saving is best for the long-term: This statement is also incorrect. Generally, savings accounts are considered safer and are recommended for short-term needs and emergencies, while investments are typically recommended for long-term goals like retirement.3. Investing typically earns between 1-2% while saving generally earns between 5-7%: This statement is not accurate. Savings accounts typically offer lower interest rates compared to investments. Investments have the potential to earn higher returns, but they also come with higher risks.4. Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies: This statement is correct. Investments are generally recommended for long-term goals like retirement because they have the potential to grow in value over time. On the other hand, savings accounts are recommended for short-term needs and emergencies because they are safer and offer liquidity.Therefore, the correct answer is option D.

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