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What type of account receives deposits of $1000?

a) Checking account
b) Savings account
c) Money market account
d) Certificate of deposit

1 Answer

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Final answer:

All options provided - checking, savings, money market, and certificate of deposit (CD) accounts - can receive deposits of $1000. CDs often come with a higher interest rate but also have penalties for early withdrawal.

Step-by-step explanation:

The type of account that can receive deposits of $1000 includes checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). When bank customers deposit money into these types of accounts, the bank treats the deposits as liabilities, as it owes the deposit amounts to its customers. Depositing into a Certificate of Deposit (CD) involves agreeing to leave a certain amount of money in the bank for a set time, often starting in the thousands of dollars for terms ranging from several months to years. In return, the bank typically offers a higher interest rate compared to regular savings accounts. However, withdrawing funds from a CD before the end of the term usually incurs a substantial penalty for early withdrawal.

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