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Cash Investments Q&A Quick Test Question #1: Since Treasury bills are direct obligations of the U.S. Federal Government, they are considered to be safe investments because: A. They're diversifed B. They're liquid C. The risk of default is low D. They're short-term Question #2: Which of the following is not the best use for cash investments? A. Emergency reserve fund B. Saving for a five-year goal C. Contingency reserve account D. Pay for this summer's vacation Question #3: Which of the following is not a type of cash investment? A. Certificate of deposit B. Savings bonds C. T-bill D. Money market accounts Question #4: Which of the following cash instruments may offer tax benefits when used for education? A. Savings bonds B. Fixed annuities C. Certificates of deposit D. Savings accounts Question #5: The biggest risks associated with cash investments is that: A. CDs may not be protected if your bank goes out of business B. Your money is not diversified C. Economic fluctuations may change the interest rate on your money market account D. Your interest rate may not keep up with taxes and inflation AIG VALIC is the marketing name for the family of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; VALIC Trust Company; and The Variable Annuity Life Insurance Company (VALIC); members of American International Group, Inc. < PREVIOUS NEXT > #38599