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Determine the type of account that each description applies to.

If no deposits or withdrawals
There is no risk of losing any
Interest income is the only
are made, money held in this
money put in this account
way to earn money in this
account may increase or
type of account.
decrease.
This account may generate
income from a variety of
sources.
Savings Account
Investment Account

1 Answer

7 votes
The first description applies to a Savings Account, and the second description applies to an Investment Account.

A Savings Account is a type of account that is used to save money and earn interest. Deposits and withdrawals can usually be made, but there is usually a limit to the number of withdrawals that can be made per month. The money held in a Savings Account may increase or decrease due to changes in the interest rate.

An Investment Account is a type of account that is used to invest money in order to earn a return. There is usually a risk of losing some or all of the money invested in this type of account. Interest income is one way to earn money in an Investment Account, but there may also be other sources of income, such as dividends or capital gains.
User Daniel Klischies
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