why do people keep money in transaction accounts?\npercentage of u.s. families holding financial…

why do people keep money in transaction accounts?\npercentage of u.s. families holding financial assets\ntype of asset percent of families owning asset\nany financial asset 99.0\ntransaction accounts 98.6\ncertificates of deposit 6.5\nsavings bonds 6.4\nbonds 1.1\nstocks 21.0\npooled investment funds (mutual funds) 11.5\nsource: federal reserve board, 2022 survey of consumer finances\na. because it is very prestigious to own a bank account.\nb. because they earn more interest than they would with other types of financial assets.\nc. because it is safer than in other types of bank accounts.\nd. because funds can be withdrawn quickly so the money can be spent.

why do people keep money in transaction accounts?\npercentage of u.s. families holding financial assets\ntype of asset percent of families owning asset\nany financial asset 99.0\ntransaction accounts 98.6\ncertificates of deposit 6.5\nsavings bonds 6.4\nbonds 1.1\nstocks 21.0\npooled investment funds (mutual funds) 11.5\nsource: federal reserve board, 2022 survey of consumer finances\na. because it is very prestigious to own a bank account.\nb. because they earn more interest than they would with other types of financial assets.\nc. because it is safer than in other types of bank accounts.\nd. because funds can be withdrawn quickly so the money can be spent.

Answer

Brief Explanations:

Transaction accounts, like checking accounts, offer high - liquidity. People can quickly access funds for daily spending needs. They are not mainly about prestige (A is wrong), usually don't earn high interest compared to some other assets (B is wrong), and aren't necessarily safer than other bank accounts in terms of basic safety (C is wrong).

Answer:

D. Because funds can be withdrawn quickly so the money can be spent.