Money Smarts Quiz Answer (3c)

c. savings accounts

The correct answer is a. stocks.

If you had invested $1 in the stocks of large companies in 1925 and you reinvested all dividends, your dollar would be worth $2,350 at the end of 1998. If the same dollar had been invested in corporate bonds, it would be worth $61, and if it had been invested in U.S. Treasury bills, it would be worth $15. (This information came from Ibbotson Associates, Inc.)

Go to the next question ...

Question 3, Answer c