Question

question 13 (multiple choice worth 4 points) (01 obr mc) which of the following is a cost, or consequence, of choosing an investment account, such as a cd, over a traditional savings account? investments will typically earn a higher rate of interest. investments usually limit access to the deposited funds. investments that lose value can reduce credit scores. investments offer greater security from fraud and theft.

Explanation:

To determine the cost/consequence of choosing a CD (Certificate of Deposit) over a traditional savings account, we analyze each option:

• Option 1: Higher interest is a benefit of CDs, not a cost.
• Option 2: CDs typically limit access to deposited funds (e.g., early withdrawal penalties or restrictions), which is a common trade - off for the higher interest they offer.
• Option 3: Losing value and affecting credit scores is not a typical consequence of CD investments.
• Option 4: CDs don't inherently offer greater security from fraud/theft compared to savings accounts in a regulated bank.

Answer:

B. Investments usually limit access to the deposited funds.