Investments are distinguished from savings on the basis of
A)length of time held.
B)initial dollar outlay.
C)depreciation.
D)voting rights.
E)level of risk and expected return.

Question

Quizplus · Accepted Answer

Investments are distinguished from savings primarily by their level of risk and expected return. Savings typically refer to low-risk, low-return accounts such as a savings account or a certificate of deposit (CD), while investments involve taking on more risk and potentially earning higher returns, such as stocks, bonds, mutual funds, and real estate. While the length of time held, initial dollar outlay, and depreciation may be factors that differentiate specific investments, they are not the primary factor that distinguishes investments from savings. Voting rights may also be a factor for certain types of investments, such as stocks, but this is not applicable to all investment types.

Investments Are Distinguished from Savings on the Basis of