Question

Which of the following is generally true about savings vehicles?
A: Savings vehicles are only useful for long-term investments.
B: People should evaluate different forms of savings vehicles based on their needs.
C: Savings vehicles are never insured.
D: All of the above

Answer 1

The correct answer is B - people should evaluate different forms of savings vehicles based on their needs. There are a lot of possible options out there, and it's important to consider what works best for you before choosing one savings vehicle over another.

Answer 2

The correct answer is B.
Saving vehicles refers to bank accounts that one can use to hold his or her savings. There are two basic types of financial vehicles, these are saving vehicle and investment vehicles. Examples of saving vehicles are saving account, checking account, certificate of deposit and money market account. Generally, saving vehicle guaranty high safety but they bring low returns on principal. Examples of investment vehicles are bonds, real estate, mutual funds, stocks and commodity. Generally, investment vehicles guaranty low safety but they bring high returns on principal.