ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Simple savings account
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Certificate of Deposit (CD)
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Checking Account
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Money Market
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Detailed explanation-1: -Traditional savings accounts earn the least amount of interest. Money market accounts earn higher interest rates than traditional savings accounts but still typically offer lower interest rates than other accounts.
Detailed explanation-2: -CDs usually offer higher rates of interest than savings accounts. Savings accounts offer some of the lowest rates of any investment.
Detailed explanation-3: -CD accounts may offer better interest rates than savings accounts. Longer terms will usually also have more favorable rates.
Detailed explanation-4: -CDs shall be issued only in dematerialised form and held with a depository registered with Securities and Exchange Board of India. CDs shall be issued in minimum denomination of ₹5 lakh and in multiples of ₹5 lakh thereafter. The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year.