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As a college student, choose 2 financial instruments that best fit your short-term/long-term needs (one in...

As a college student, choose 2 financial instruments that best fit your short-term/long-term needs (one in the money and one in the capital market). For each instrument chosen, graph the average yield over time for the past ten years.

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Answer #1

The student can invest in short term fixed deposits in the money market to fulfill his short term investment needs.

With regards to longer term needs, he can invest in a index ETF such as SPY ETF wherein there is an equity exposure to give him inflation protected returns.

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