Question

You are a financial adviser. Your client, Mena, does not like risk and wants Federal Deposit Insurance Corporation (FDIC)

insurance. Which of the following instruments should she invex in?
O An index fund
A bank savings account
Treasury bills
Bonds issued by a corporation in financial distress

Answer 1

Mena should invest in a bank savings account to get FDIC insurance.

Step-by-step explanation:

If Mena wants FDIC insurance and does not like risk, she should invest in a bank savings account. Bank savings accounts are insured by the FDIC up to a certain limit, typically $250,000 per depositor. This means that even if the bank fails, Mena's money is protected.

Other options, such as an index fund, Treasury bills, or bonds issued by a corporation in financial distress, do not offer FDIC insurance and may involve some level of risk.

Learn more about investment options