a person has $3000 to deposit in a financial institution. assuming all options were offered by the same institution, which account is likely to have the lowest interest rate or pay no interest at all? savings account checking account money market account three-year certificate of deposit

Respuesta :

The account that is likely to pay the least interest rate will be the Checking Account. So, Option B is the correct answer.

A Checking Account is a type of bank account that allows easily deposit of funds and withdrawal of money easily. The funds can be deposited using cheques and withdrawn easily using a debit card or setting up direct deposits. These types of accounts are mostly liquid bank accounts.

The funds are accessible easily. And there is unlimited withdrawal and deposits but have a limit set for daily transaction. The primary use of these types of accounts is to hold money in a safe place for a short period of time and then it can be easily accessible when needed.

A checking account generally provides a lower interest rate as compared to a savings, money market, or certificate of deposit, and therefore checking accounts should not be used for a long-term investment.

Hence, Option B is the correct answer.

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