Question
Juanita is saving up to buy a truck. She wants to put $4000 down and borrow the rest. That down payment will lower the monthly payment so she can easily afford a new truck. She has been saving for 18 months and has half the money. It will take her about the same amount of time to save up the other half. What should she do with the $2000 in the meantime?
(1 point)
Responses
purchase a government bond and postpone the purchase
purchase a government bond and postpone the purchase
keep it in her checking account with the money she spends regularly
keep it in her checking account with the money she spends regularly
change her strategy and borrow all of the money to get the truck sooner
change her strategy and borrow all of the money to get the truck sooner
invest in a treasury bill so that she can access the money when she needs it
invest in a treasury bill so that she can access the money when she needs it
(1 point)
Responses
purchase a government bond and postpone the purchase
purchase a government bond and postpone the purchase
keep it in her checking account with the money she spends regularly
keep it in her checking account with the money she spends regularly
change her strategy and borrow all of the money to get the truck sooner
change her strategy and borrow all of the money to get the truck sooner
invest in a treasury bill so that she can access the money when she needs it
invest in a treasury bill so that she can access the money when she needs it
Answers
GPT-4o mini
In this situation, the best option for Juanita would be to **invest in a treasury bill so that she can access the money when she needs it**.
Treasury bills are considered a safe investment and can earn a small return while still allowing her to access the funds when she is ready to make her down payment on the truck. This way, she is not just keeping the money idle in a checking account, and she avoids the risks associated with borrowing all the money sooner.
Treasury bills are considered a safe investment and can earn a small return while still allowing her to access the funds when she is ready to make her down payment on the truck. This way, she is not just keeping the money idle in a checking account, and she avoids the risks associated with borrowing all the money sooner.