Which option describes a bank savings account?
(1 point)
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 "basket" of money pooled in by many investors to acquire securities based on the value of cash.
An investment in stocks.
An account giving 0.05% interest with no other limitations
The option that describes a bank savings account is:
(1 point)
An account giving 0.05% interest with no other limitations.
The correct option that describes a bank savings account is:
(1 point) An account giving 0.05% interest with no other limitations.
To identify this answer, you need to understand the features and characteristics of a bank savings account. A bank savings account is a type of deposit account offered by banks, where individuals can store their money and earn some interest on the deposited amount.
In this context, the first option states that the savings account offers an interest rate of 0.05% without any other limitations. This aligns with the general concept of a savings account, where the deposited funds earn interest over time.
The other options provided are not related to a bank savings account:
- The second option refers to a deposit that needs to be maintained for one year in exchange for a 2% interest. Although it involves depositing money, the specified duration and interest rate do not fit the description of a savings account.
- The third option describes a pool of money invested by multiple investors to acquire securities based on the value of cash. This does not relate to a savings account but rather describes a mutual fund or a similar investment vehicle.
- The fourth option mentions an investment in stocks. While this can be a way for individuals to grow their money, it is not specific to a bank savings account.
Therefore, based on the given options, the first option aligns with the characteristics of a bank savings account.