What is the primary similarity between liquid funds and savings accounts?

"Both offer the flexibility of depositing and withdrawing money easily." "Both guarantee a fixed interest rate, ensuring stable returns." "Both are considered high-risk investment options." "Both primarily invest in long-term assets like real estate."

What is the typical interest rate range for savings accounts?

"10-15%" "1-3%" "2.7-6%" "8-12%"

How are liquid funds categorized in terms of risk?

"High-risk mutual funds" "Medium-risk investment options" "Low-risk mutual funds" "Risk-free investment instruments"

What types of assets do liquid funds primarily invest in?

"Long-term bonds and real estate" "Stocks and high-risk securities" "Short-term assets like commercial paper and treasury bills" "Precious metals like gold and silver"

What is the main risk associated with savings accounts?

"Fluctuations in market interest rates" "The bank facing financial difficulties" "Changes in government regulations" "The value of deposited funds declining"

What type of tax is levied on earnings from liquid funds?

"Property tax" "Income tax" "Capital gains tax" "Sales tax"

What is a key factor to consider when choosing liquid funds?

"Past performance as a guarantee of future returns" "Recommendations from friends and family" "The fund manager's strategy and track record" "Investing in funds solely based on popularity"

Why is diversifying investments in liquid funds considered a prudent strategy?

"To maximize returns by concentrating investments in a single fund" "To minimize risk by spreading investments across multiple funds" "To guarantee a fixed interest rate across all investments" "To eliminate the need for a savings account"