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What role, if any, will short-term investments play in your portfolio? Why? Complete the following table for the short-term investments listed. Find their current yields

What role, if any, will short-term investments play in your portfolio? Why? Complete the following table for the short-term investments listed. Find their current yields online, and explain which, if any, you would include in your investment portfolio. The short term investment will be a Certificate of Deposit (CD). The current yield is 1.90% apy.

Type of Investment

Minimum Balance

Interest Rate

Federal Insurance

Method and Ease of Withdrawing Funds

a. Passbook savings account

None

Yes

In person or through teller machines; very easy

b. NOW account

Unlimited check-writing privileges

c. Money market deposit account (MMDA)

d. Asset management account

e. Series I savings bond

Virtually none

f. U.S. Treasury Bill

g. Certificate of deposit (CD)

h. Commercial paper

i. Bankers acceptance

j. Money market mutual fund (money fund)

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