Ayesha received her tax refund and wants to put it aside to use for a down payment on a car that she will buy in a year or two.
What would be a good place for Ayesha to put her money in, knowing her timeline for this goal?
a CD (certificate of deposit)
(Choice B) stocks or bonds
B
stocks or bonds
(Choice C) a bank account
C
a bank account
1 answer
The most suitable option for Ayesha to put her money aside for a down payment on a car within a year or two would be a CD (Certificate of Deposit) or a bank account. These options offer lower risk and are more liquid in the short term, ensuring that her money will be readily available when she is ready to make the down payment. Stocks and bonds, on the other hand, carry a higher level of risk and may not be suitable for short-term goals.