You have $3,000 that you may need any day to replace the furnace in your house. Which of the following would be the best place to put the $3,000?

a. A one-year CD earning 4%

b. A common stock mutual fund earning 9%

c. A savings account earning 2%

d. Shares of stock in a high-tech company that could double in 6 months

The real return on a $1,000 investment that pays 5% when the inflation rate is 6% is:

a. 1%

b. 5%

c. -5%

d. -1%