15
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 15 • Personal Finance - EL3403

A bank offers both checking accounts and savings accounts.Why might someone transfer money from a checking account to the savings account?

Answer
A
Money in a savings account is held until retirement.
B
Money in a savings account will earn a small amount of interest.
C
Money in a savings account can quickly produce a large profit.
D
Money in a savings account is invested in the stock market.

Explanation

A person may move money into a savings account because the bank pays interest on the balance, so the money can grow gradually while it is saved. The interest is usually small; savings accounts do not promise a large profit or automatically invest the money in the stock market.

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