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

1 answer

The best option for Juanita would be to invest in a treasury bill so that she can access the money when she needs it. This allows her to earn interest on her $2000 while keeping it relatively liquid, meaning she can access it when she's ready to make her down payment on the truck.