Which of the following is considered both a short- and long-term investment?

Certificates of deposit (CDs) are considered both short- and long-term investments due to their flexible duration and the nature of how they function within investment strategies.

CDs are time deposits offered by banks with fixed interest rates and maturity dates that typically range from a few months to several years. Because they can be purchased for various durations, investors have the flexibility to choose a term that aligns with both their short-term and long-term investment goals. For instance, one might invest in a short-term CD to take advantage of higher interest rates while needing liquidity soon, or opt for a long-term CD for stability and predictable returns over an extended period.

This dual capability of CDs allows investors to balance their portfolios according to their cash flow needs, while also benefiting from a relatively safe investment vehicle. In addition, the predictable interest payments and lower risk involved in CDs make them appealing for conservative investors, whether they are looking for short-term gains or long-term growth.

In contrast, the other investment options listed—stocks, cryptocurrency, and real estate—typically have characteristics that skew more towards being either a short-term speculative investment or a long-term hold, rather than serving effectively in both capacities.