Mira has been given $1,000 to invest. She will need to use the money in one year, and she is worried that it will lose value. Which investment best fits Mira’s goals?

A certificate of deposit is a good fit for a one-year time horizon because Mira can choose a term that matches when she needs the money, and it typically earns interest with relatively low risk. A stock can lose value over a short period, while a 10-year bond ties up her money longer than she wants. A personal loan is not a suitable investment for preserving her savings.

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