lloyd has $20,000 to deposit. his wife’s illness leads to medical expenses beyond what their insurance will…

lloyd has $20,000 to deposit. his wife’s illness leads to medical expenses beyond what their insurance will cover, so lloyd must often quickly access his savings. recommend a good way for lloyd to store his money. a. a two - year cd giving 9.1% interest annually b. an online savings account giving 3.6% interest c. a series of six - month money market accounts paying 4.6% interest d. a checking account with free checks

lloyd has $20,000 to deposit. his wife’s illness leads to medical expenses beyond what their insurance will cover, so lloyd must often quickly access his savings. recommend a good way for lloyd to store his money. a. a two - year cd giving 9.1% interest annually b. an online savings account giving 3.6% interest c. a series of six - month money market accounts paying 4.6% interest d. a checking account with free checks

Answer

Brief Explanations:

Lloyd needs quick access to his savings due to his wife's medical expenses. A CD has a fixed - term and early withdrawal penalties, so option a is not suitable. Money market accounts may have some restrictions on withdrawals. A checking account offers the most liquidity, allowing for quick access to funds, although it typically has lower or no interest compared to savings or investment accounts. But in this case, liquidity is the main priority.

Answer:

d. A checking account with free checks