QuestionApril 20, 2025

Which of these investments may be long term? Choose four answers. savings accounts mutual funds bonds retirement funds commodities

Which of these investments may be long term? Choose four answers. savings accounts mutual funds bonds retirement funds commodities
Which of these investments may be long term? Choose four answers.
savings accounts
mutual funds
bonds
retirement funds
commodities

Solution
3.7(248 votes)

Answer

Mutual funds, Bonds, Retirement funds, Commodities Explanation 1. Identify Long-Term Investments Long-term investments typically consist of financial products intended to be held for several years to benefit from growth or income. Common options include mutual funds, bonds, retirement funds, and commodities. These assets can appreciate over time and are generally more suitable for long-term objectives than savings accounts, which are often short-term in nature. 2. Evaluate Each Option Evaluate each of the given investment types to determine its typical investment horizon. Savings accounts usually offer liquidity and low returns, making them more short-term. Mutual funds, bonds, retirement funds, and commodities can offer higher returns over time, making them more suitable as long-term investments.

Explanation

1. Identify Long-Term Investments<br /> Long-term investments typically consist of financial products intended to be held for several years to benefit from growth or income. Common options include mutual funds, bonds, retirement funds, and commodities. These assets can appreciate over time and are generally more suitable for long-term objectives than savings accounts, which are often short-term in nature.<br />2. Evaluate Each Option<br /> Evaluate each of the given investment types to determine its typical investment horizon. Savings accounts usually offer liquidity and low returns, making them more short-term. Mutual funds, bonds, retirement funds, and commodities can offer higher returns over time, making them more suitable as long-term investments.<br /><br />
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