Where should Elena put her graduation gift money of $5,000 if she plans to use it to help fund a European trip in four years?

Question

Quizplus · Accepted Answer

Since Elena plans to use the money in the near future, it is important that she puts it in a short-term, safe, insured, guaranteed investment. This will ensure that her money is safe and she can access it when she needs it for her European trip. Putting it in an index mutual fund or gold/precious metals can be risky, as the value of these investments can fluctuate in the short-term. Putting it under her mattress is not a wise choice either, as there is a risk of theft or loss.

Where Should Elena Put Her Graduation Gift Money of $5,000