Which of the following statements about investing is FALSE? A. Investing is riskier than putting money in a savings account. B. On average, investing money in the stock market earns a higher return than putting money in a savings account. C. Investing is a guaranteed way to grow your money. D. Investing is best for long-term financial goals, like paying for retirement.

Step 1: Define the Problem

Identify which statement about investing is false.

Step 2: Break Down the Problem

Evaluate each statement to determine its validity:

• Statement A: Compare the risk levels of investing and savings accounts.
• Statement B: Compare average returns of stock market investments and savings accounts.
• Statement C: Assess if investing guarantees growth of money.
• Statement D: Determine if investing is suitable for long-term financial goals.

Step 3: Apply Relevant Concepts

• Risk and Return: Understand the risk-return tradeoff in investments versus savings accounts.
• Guaranteed Returns: Recognize that investments do not guarantee returns.
• Investment Goals: Identify the suitability of investments for long-term goals.

Step 4: Analysis, Verify and Summarize

• Statement A: True. Investing typically involves higher risk compared to the safety of a savings account.
• Statement B: True. Historically, the stock market has provided higher average returns than savings accounts.
• Statement C: False. Investing does not guarantee growth; there is always a risk of loss.
• Statement D: True. Investing is generally recommended for long-term goals due to potential for higher returns over time.

Final Answer

The false statement is C. Investing is a guaranteed way to grow your money.