ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Checking, Savings, Money Market, CD
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Checking, Savings, CD, Money Market
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Savings, Checking, Money Market, CD
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Savings, Money Market, Checking, CD
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Detailed explanation-1: -There are four common types of savings tools: checking accounts, savings accounts, money market deposit accounts, and cerficates of deposit, ordered from lowest to highest rates of interest typically paid.
Detailed explanation-2: -The five most common types of savings tools are checking accounts, savings accounts, money market deposit accounts, certificates of deposit, and savings bonds. It is important to determine which savings tools are appropriate to assist in the attainment of personal financial goals.
Detailed explanation-3: -Certificate of deposit, or CD: usually has the highest interest rate among savings accounts but the most limited access to funds.
Detailed explanation-4: -The Emergency Fund. This is your “Do Not Touch"fund. The “I can touch"fund. This is for things you know are going to happen, but just not every month. "I know what I want, I just need to pay for it"fund. This kind of savings is for a specific goal or purchase. Long-term savings.