Which statement is TRUE?
A) One should avoid investing in bonds because they give lower returns than do stocks.
B) If you need your money for something in 2 years, avoid putting it in stocks.
C) Retirees should allocate more of their investments to stocks.
D) Recent college graduates should allocate more of their money to bonds than to stocks.

Question

Quizplus · Accepted Answer

If you need your money for something in a short period of time (such as 2 years), it is best to avoid putting it in stocks. Stocks are a long-term investment and are subject to fluctuations, which could result in a loss if you need the money quickly. Bonds are generally considered a safer option for short-term goals.

Which Statement Is TRUE