22
QuizMultiple Choice

Investment Strategies — Cumulative exam

Question 22 • * HSA 26-27 Economics

In which situation would a savings account be the best investment to earn interest?

Answer
A
when you need to make frequent payments for bills
B
when you have to pay monthly installments for a loan
C
when you need immediate access to cash
D
when you want to buy a new car in 3 years

Explanation

A savings account is a good place for money you plan to use in the future while earning interest and keeping it relatively accessible. Saving for a car you plan to buy in 3 years fits that purpose. Frequent bill payments, loan installments, and immediate cash needs are mainly reasons to keep money in a checking account.

AI-written and checked against the verified answer.

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