If you have $1,000 to invest, but will need the money in one month to pay bills, you should
A) put the money in a money market savings account.
B) buy a one-year CD.
C) buy stocks of relatively stable firms that have low risk.
D) invest in a diversified stock mutual fund.

Question

Quizplus · Accepted Answer

A money market savings account is the most suitable option for short-term investment because it provides liquidity and safety. CDs, stocks, and mutual funds carry higher risks or penalties for early withdrawal, making them less suitable for someone needing access to their funds in a short period.

If You Have $1,000 to Invest, but Will Need the Money