question 5 darren believes in saving money and follows a strict monthly budget. he wants to invest his…

question 5 darren believes in saving money and follows a strict monthly budget. he wants to invest his savings in a safe option that pays more than his savings account, and he is content with earning a lower, consistent amount of money. he does not want to worry about losing any money with market changes. which type of investment below should darren consider? new stock offerings certificates of deposit (cds) business start - ups junk bonds

question 5 darren believes in saving money and follows a strict monthly budget. he wants to invest his savings in a safe option that pays more than his savings account, and he is content with earning a lower, consistent amount of money. he does not want to worry about losing any money with market changes. which type of investment below should darren consider? new stock offerings certificates of deposit (cds) business start - ups junk bonds

Answer

Brief Explanations:

Certificates of deposit (CDs) are a low - risk investment. They offer a fixed interest rate over a specific period, providing a consistent return and are insured by the FDIC up to a certain amount. New stock offerings are risky as stock values can fluctuate greatly. Business start - ups are highly risky with no guarantee of success. Junk bonds have a high risk of default. Darren wants a safe investment with a consistent return, so CDs fit his needs.

Answer:

B. Certificates of deposit (CDs)