ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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easy access for emergencies
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high interest rate
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potential for high return
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option to buy bonds
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Detailed explanation-1: -Because savings accounts pay interest while keeping your funds easily accessible, they’re a good option for emergency or short-term cash. In exchange for the ease and liquidity that savings accounts offer, you’ll earn a lower rate than that paid by more restrictive savings instruments and investments.
Detailed explanation-2: -This can be of prime importance in case of an emergency. If you have a pressing need (such as immediate home repair, or unforeseen medical treatment due to an injury), you would need a lump sum at very short notice. A savings account allows you to withdraw money without a penalty.
Detailed explanation-3: -A sudden illness or accident, unexpected job loss, or even a surprise home or car repair can devastate your family’s day-to-day cash flow if you aren’t prepared. While emergencies can’t always be avoided, having emergency savings can take some of the financial sting out of dealing with these unexpected events.