The correct answer is: B. Commercial bank deposits.
Commercial bank deposits are a type of financial instrument that is considered to be a safe and low-risk investment. They are insured by the Federal Deposit Insurance Corporation (FDIC), which means that up to $250,000 of each depositor’s account is protected in the event of a bank failure. This makes commercial bank deposits a good choice for investors who are looking to avoid actively managing their portfolios.
Common stock, financial futures, and real estate are all considered to be more risky investments than commercial bank deposits. Common stock is a type of equity security that represents ownership in a company. Financial futures are contracts that obligate the buyer to purchase or sell a specific asset at a predetermined price on a specified date in the future. Real estate is property that includes land and the buildings on it. All of these investments can be volatile and can lose value over time.
Investors who are looking to avoid actively managing their portfolios should consider investing in commercial bank deposits. Commercial bank deposits are a safe and low-risk investment that is insured by the FDIC.