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How do you determine the safety of a risk-free investment?

Curious about risk-free investment

How do you determine the safety of a risk-free investment?

When it comes to riskfree investments, the safety is typically determined by the creditworthiness of the entity issuing the investment. For example, government bonds issued by a stable government with a good credit rating are generally considered to be very safe investments.

In addition to creditworthiness, other factors to consider when determining the safety of a riskfree investment include the stability of the financial system, the strength of the currency, and the risk of inflation. It's important to do your own research and due diligence before investing in any riskfree investment to ensure it aligns with your financial goals and risk tolerance.

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