You have $3,000 that you may need any day to replace the furnace in your house. Which of the following would be the best place to put the $3,000?
A) A one-year CD earning 4%
B) A common stock mutual fund earning 9%
C) A savings account earning 2%
D) Shares of stock in a high-tech company that could double in 6 months

Question

Quizplus · Accepted Answer

A savings account earning 2% is the best option for funds that may be needed on short notice because it provides liquidity and safety, unlike the other options which either lock in the funds for a period of time or involve higher risk.

You Have $3,000 That You May Need Any Day to Replace