ECONOMICS
SAVING AND INVESTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest-bearing Checking Account
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Money Market Deposit Account
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Savings Account
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None of the above
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Detailed explanation-1: -Average money market rates fall between 0.01% APY and 3.45% APY, again depending on your balance.
Detailed explanation-2: -Money Market Fund Rates Returns from these instruments are dependent on the applicable market interest rates, and therefore the overall returns from money market funds are also dependent on interest rates. So, the lower the rate set by the Fed, the lower the rate a money market fund pays to its investors.
Detailed explanation-3: -Essentially, term structure of interest rates is the relationship between interest rates or bond yields and different terms or maturities. When graphed, the term structure of interest rates is known as a yield curve, and it plays a crucial role in identifying the current state of an economy.
Detailed explanation-4: -Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. These deposits, hence, offer the highest rate of interest, ranging from 4 to 7.