Solved

Les Says That It Is Foolish to Invest in the Stock

Question 163

Multiple Choice

Les says that it is foolish to invest in the stock market because you can lose money.It is much better to simply put your money in a savings account where it is safe.Laura agrees that investing is risky,but says that even relatively low-risk investments will earn more than the low rate of interest that is paid in a savings account.Which of the following undermines Les's argument?


A) The value of some companies' stocks have grown.
B) The stock market can experience a decline in its overall value.
C) The return on a savings account is not as high as the return on some stocks.
D) The interest rate earned in a savings account may be lower than the rate of inflation.
E) A minimum balance must be maintained in a savings account.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions