Question 20 (Multiple Choice, Worth 5 points)

Which account option may require larger money contributions than usual but offers a higher interest rate than traditional savings?

A. Certificate of deposit
B. Checking
C. Money market account
D. Savings

Question 21 (Multiple Choice, Worth 5 points)



Answer :

Final answer:

A certificate of deposit (CD) requires larger money contributions than usual but offers a higher interest rate than traditional savings accounts.


Explanation:

Certificate of deposit (CD) is the account option that may require larger money contributions but offers a higher interest rate than traditional savings accounts. With a CD, you deposit a specific amount for a set period, and the bank pays a higher interest rate in return.

CDs usually have terms ranging from a few months to several years, providing an opportunity for higher returns compared to regular savings accounts. However, withdrawing money before the term ends can lead to significant penalties.


Learn more about Certificate of Deposit here:

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