Which option describes a bank savings account?(1 point)
Responses
An account giving 0.05% interest with no other limitations
An account giving 0.05% interest with no other limitations
A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
An investment in stocks.
Which of the following is a certificate of deposit (CD)?(1 point)
Responses
An account paying 0.5% interest with no other limitations.
An account paying 0.5% interest with no other limitations.
A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
An investment in stocks.
A deposit that has to be maintained in the bank for 1 year in exchange for a 2% interest.
Which of the following is classified as a money market mutual fund?(1 point)
Responses
An account giving 0.5% interest with no other limitations.
An account giving 0.5% interest with no other limitations.
A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
An investment in stocks.
A “basket” of money pooled in by many investors to acquire securities based on the value of cash.
What does the abbreviation ROI stand for?(1 point)
Responses
ratio of investment
ratio of investment
return on internal loan
return on internal loan
return on investment
return on investment
ratio of organic investment
return on investment
Which of the following is the safest investment?(1 point)
Responses
stocks
stocks
government bonds
government bonds
mutual funds
mutual funds
cryptocurrencies
government bonds
The correct option that describes a bank savings account is:
1. An account giving 0.05% interest with no other limitations.
To determine the correct option, we need to understand what a bank savings account is. A bank savings account is a type of account offered by banks where individuals can deposit and store their money with the intention of earning interest on those funds. In return for depositing their money in a savings account, the bank pays a certain amount of interest on the deposited funds.
Among the options provided, only the first option accurately describes a bank savings account. It states that the account gives 0.05% interest with no other limitations. This means that the account holder will receive an annual interest rate of 0.05% on the money they have deposited, without any additional restrictions or limitations.
The other options mentioned in the responses do not accurately describe a bank savings account. The second option describes a fixed deposit, where a deposit is maintained in the bank for a specified period (in this case, 1 year) in exchange for a higher interest rate (2%). The third option describes a mutual fund, where money is pooled in by multiple investors to acquire securities. And the fourth option describes an investment in stocks, which is unrelated to a bank savings account.
Therefore, the correct option describing a bank savings account is the first one given: "An account giving 0.05% interest with no other limitations."