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If Delia invests her money in savings and government bonds which phrase most likely describes her investment strategy? A. High risk, low return B. Low risk, high return C. Low risk, low return D. High risk, high return

Question

If Delia invests her money in savings and government bonds which phrase
most likely describes her investment strategy?
A. High risk, low return
B. Low risk, high return
C. Low risk, low return
D. High risk, high return

If Delia invests her money in savings and government bonds which phrase most likely describes her investment strategy? A. High risk, low return B. Low risk, high return C. Low risk, low return D. High risk, high return

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KeeganProfessional · Tutor for 6 years

Answer

C

Explain

Savings accounts and government bonds are both considered to be conservative investment options. Savings accounts provide a safe place to store money and typically offer interest, although the rate is often quite low. They are usually insured by a government agency like the FDIC in the United States, which means that even if the bank fails, the money is protected up to a certain amount.Government bonds are loans to the government that pay back the principal with interest. They are considered low risk because they are backed by the government, which is unlikely to default on its debts. However, because of their safety, they also tend to offer lower returns compared to investments with higher risk, such as stocks.Therefore, Delia's investment strategy, which involves putting her money into savings and government bonds, is best described as "low risk, low return".
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