Question

savings options and investment risks quick check
which option describes a bank savings account? (1 point)
a deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest
a \basket\ of money pooled in by many investors to acquire securities based on the value of cash
an account giving 0.05% interest with no other limitations
an investment in stocks

Explanation:

A bank savings account is a basic account where customers deposit money. It typically offers a small interest rate (like 0.05% in some cases) and has no major restrictions compared to other financial products.

• The first option describes a time - deposit (like a certificate of deposit) where the money is locked for a specific period (1 year here) in exchange for interest.
• The second option is more like a mutual - fund or an exchange - traded fund (ETF) concept where money is pooled.
• The fourth option is an investment in stocks which is a different asset class from a savings account.

Answer:

An account giving 0.05% interest with no other limitations.