Which practice involves leaving money invested for many years despite short-term volatility?

• A. Long-Term Investing
• B. Saving
• C. Yield
• D. Automation Bias

Answer: (A)

Long-term investing means keeping money invested for many years, riding out short-term market ups and downs. The idea is that markets can swing a lot in the near term, but over a longer horizon they tend to rise, and your money has time to compound. By staying invested rather than trying to react to every tremor, you give your portfolio the opportunity to grow and recover from dips.

Saving is about putting money aside in cash or cash-equivalents, which tends to have lower growth and doesn’t rely on staying invested in riskier assets through volatility. Yield refers to the income an investment generates, like interest or dividends, and doesn’t describe the behavior of how long you hold investments. Automation bias is a cognitive pitfall where people rely too heavily on automated tools, not a strategy for investing. So the practice described is long-term investing.