BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance
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Want
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Inflation
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Bank
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Detailed explanation-1: -It’s a good idea to keep a small sum of cash at home in case of an emergency. However, the bulk of your savings is better off in a savings account because of the deposit protections and interest-earning opportunities that financial institutions offer.
Detailed explanation-2: -It isn’t safe. Keeping your money in literal, tangible cash makes it extremely vulnerable. You could be robbed, or there could be a flood, a fire, or a pest infestation that snacks on your dollars.
Detailed explanation-3: -“U.S. Treasury securities, such as Treasury bills, notes and bonds, are considered to be among the safest investments because they are backed by the full faith and credit of the U.S. government, ” Boothe said.
Detailed explanation-4: -Savings accounts are a safe place to keep your money because all deposits made by consumers are guaranteed by the Federal Deposit Insurance Corporation (FDIC) for bank accounts or the National Credit Union Administration (NCUA) for credit union accounts.