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\no buy a six - month certificate of deposit (cd).\no close her savings account.\no invest in a 15 - year municipal bond.\no 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\no buy a six - month certificate of deposit (cd).\no close her savings account.\no invest in a 15 - year municipal bond.\no buy antiques.

Answer

Brief Explanations:

If a person believes interest rates will rise, they should keep their money in a more liquid form to be able to reinvest at higher - rates later. Closing a savings account is not a way to prepare for rising rates. Buying antiques is not related to interest - rate anticipation. Investing in a 15 - year municipal bond locks money in at a fixed rate and may not be beneficial if rates rise. Buying a six - month CD keeps the money relatively liquid and allows for reinvestment when it matures if rates have gone up.

Answer:

buy a six - month certificate of deposit (CD).