a person has $2,000 to save or invest. if the person strongly believes that interest rates will go up within…

a person has $2,000 to save or invest. if the person strongly believes that interest rates will go up within a year, the person should buy a six - month certificate of deposit (cd). close her savings account. invest in a 15 - year municipal bond. buy antiques.

a person has $2,000 to save or invest. if the person strongly believes that interest rates will go up within a year, the person should buy a six - month certificate of deposit (cd). close her savings account. invest in a 15 - year municipal bond. buy antiques.

Answer

Brief Explanations:

When a person expects interest rates to rise within a year, a short - term investment like a six - month CD is a good choice. Closing a savings account is not a wise move as it may disrupt savings habits. A 15 - year municipal bond locks money for a long time and will face lower returns if interest rates rise later. Buying antiques is a non - interest rate sensitive investment and not related to the interest rate expectation.

Answer:

buy a six - month certificate of deposit (CD)