Question

question 7 of 10
which type of account pays more interest than a savings account but requires you to leave your money untouched for a period of time?
a. money market account
b. checking account
c. flexible spending account
d. certificate of deposit

Explanation:

• A money market account has higher interest than a basic savings account but allows limited withdrawals, no mandatory lock-in period.
• A checking account has very low interest and is for daily transactions, no lock-in.
• A flexible spending account is for pre-tax medical expenses, not an interest-bearing savings product.
• A certificate of deposit (CD) offers higher interest rates than standard savings accounts and requires the funds to remain deposited for a fixed, predetermined term (penalties apply for early withdrawal).

Answer:

D. Certificate of deposit