Don Dillon Is a 24-Year-Old Graphic Designer

Multiple Choice

Don Dillon is a 24-year-old graphic designer.He eventually wants to get married,raise a family,and buy a house.He knows that he has to start putting money away so that his goals can someday become a reality.He has heard that investing is risky because you can lose money as well as make money.So Don decides to play it safe and deposit money in a bank on a regular basis.Why might this not be his best strategy?

A) Stock investments will always result in high returns.
B) It pays to take chances with your money.
C) You can actually lose money with bank savings due to inflation and taxes.
D) People usually benefit from risky investments.
E) Most savings accounts are insured by the FDIC.