17
practice examMultiple Choice

Practice Exam

Question 17 • Personal Finance

Part A: A student wants long-term growth with moderate risk. Which option is best?

Answer
A
Diversified ETF
B
Certificate of deposit
C
Cash savings
D
Checking account

Explanation

A diversified ETF holds a range of investments, which can reduce the risk of relying on a single company while still offering potential for long-term growth. A certificate of deposit, cash savings, and a checking account are generally lower-risk choices, but they usually offer less growth potential.

AI-written and checked against the verified answer.

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