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Determine the account that each description applies to.

1. If no deposits or withdrawals are made, money held in this account may increase or decrease.
2. This account may generate income from a variety of sources.
3. There is no risk of losing any money put in this account.
4. Interest income is the only way to earn money in this type of account.

Choices:
- Savings Account
- Investment Account



Answer :

GinnyAnswer

Final answer:

Savings accounts offer safer returns with minimal risk, while investment accounts involve market risks for potentially higher returns.


Explanation:

Savings Account:

  • Money held in a savings account may increase or decrease based on interest rates and market conditions.
  • This account generates income from interest earned on deposited funds.
  • Deposits in savings accounts carry minimal risk as they are typically insured.

Investment Account:

  • Earning money in an investment account can be through various sources like dividends, capital gains, and interest.
  • Investment accounts are subject to market fluctuations and carry varying levels of risk depending on the investments chosen.
  • Unlike savings accounts, investment accounts have the potential for higher returns but also come with a higher level of risk.

Learn more about Types of accounts - Savings vs. Investment

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