Question

How is a savings account most useful?

for saving for a long time without withdrawing
for depositing and withdrawing money frequently
for using money for CDs and other investments
for using money in the near future but not right away

Answer 1

How is a savings account most useful?

for saving for a long time without withdrawing

for depositing and withdrawing money frequently

for using money for CDs and other investments

D. for using money in the near future but not right away

this is correct on edge 2020

Answer 2

The fourth answer is correct (D).

The savings account is an investment that generates little income. To make long-term investments, there are other options that give a better return.

However, this type of account serves so that the money that will be used in the short term has at least some income. In other words, if the investor is sure that he does not need the liquidity of the money, he can apply in bonds, debentures, shares, etc. If the investor has money that needs to be kept liquid to be used soon, the best option is the savings account.