Which example is a common type of savings plan?

a) a mutual friend

b) a company stock

c) a government bond

d) a certificate of deposit

Correct answer:

d) a certificate of deposit

A mutual fund (not a mutual "friend") is a fund that combines various stocks holdings in the stock market into a single account, thus spreading out the types of stock shares held.

A company stock is also a stock market investment.

A government bond is essentially loaning money to the government for which they pay you interest.

A certificate of deposit is issued by a bank to a bank customer. The money deposited is placed into an account for a specified length of time at a guaranteed rate of interest.