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What is the term for a bank account that earns interest, typically has limits on the number of transactions, and is not specifically meant for rapid use?

A) Checking account
B) Savings account
C) Certificate of deposit (CD)
D) Money market account

User Dmkc
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1 Answer

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Final answer:

A certificate of deposit (CD) is a bank account that earns interest, has limits on transactions, and is not meant for rapid use.

Step-by-step explanation:

A certificate of deposit (CD) is the term for a bank account that earns interest, typically has limits on the number of transactions, and is not specifically meant for rapid use. With a CD, you agree to deposit a certain amount of money for a stated period of time, and in exchange, the bank agrees to pay a higher interest rate than for a regular savings account. While you can withdraw the money before the allotted time, there is a substantial penalty for early withdrawal.

User JamesS
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