Karen wants to begin building her retirement fund, but she is very apprehensive about the stock market and wants nothing to do with it. She wants something that, historically, has been very stable. Which of the following would you recommend that she invest in?
A) Mutual funds
B) Corporate bonds
C) Government securities
D) Exchange traded funds

Question

Quizplus · Accepted Answer

Government securities, such as treasury bonds, have a history of being very stable investments. They are backed by the full faith and credit of the government, making them a low-risk option for Karen's retirement fund. Mutual funds and exchange-traded funds invest in the stock market, which Karen wants to avoid. Corporate bonds can be riskier than government securities, as they depend on the financial stability and success of the issuing company.

Karen Wants to Begin Building Her Retirement Fund, but She