Question

a. interest is calculated at the end of a fixed time period
b. interest is paid monthly
c. designed to be daily money management tools
d. your money must remain in the account for a fixed period of time

1. regular savings account
2. cds
3. money market account
4. checking account

Explanation:

Analyze account features

We evaluate the four descriptions (a, b, c, d) to match them with the four financial accounts (1, 2, 3, 4).

• a. Interest is calculated at the end of a fixed time period: This is a defining characteristic of a Regular savings account, where interest is typically calculated and compounded at the end of a set period (like monthly or quarterly) based on the balance.
• b. Interest is paid monthly: Money market accounts typically pay interest on a monthly basis, often offering tiered rates based on the balance.
• c. Designed to be daily money management tools: Checking accounts are transactional accounts designed specifically for daily spending, bill payments, and money management.
• d. Your money must remain in the account for a fixed period of time: This is the core definition of a Certificate of Deposit (CD), which requires a time-bound deposit.

Match accounts to descriptions

Using our understanding of Financial Institutions and account types:

1. Regular savings account matches with a (Interest is calculated at the end of a fixed time period).
2. CDs match with d (Your money must remain in the account for a fixed period of time).
3. Money market account matches with b (Interest is paid monthly).
4. Checking account matches with c (Designed to be daily money management tools).

Answer:

Question 1

1. Regular savings account: a

Question 2

1. CDs: d

Question 3

1. Money market account: b

Question 4

1. Checking account: c