Question

bank accounts differ on many features, one of which is interest. which of these accounts typically pays more interest than a money market account? choose 1 answer: a certificate of deposit (cd) b savings account c checking account related content types of bank accounts 3:34 article account types

Explanation:

To determine which account pays more interest than a money market account, we analyze each option:

• Option A (Certificate of Deposit - CD): CDs typically offer higher interest rates than money market accounts because they require the depositor to keep the money locked in for a specific term (e.g., 6 months, 1 year, 5 years). In return for this reduced liquidity, banks offer higher interest.
• Option B (Savings Account): Savings accounts generally have lower interest rates than money market accounts. They are more liquid (easier to withdraw money from) and thus offer less interest.
• Option C (Checking Account): Checking accounts are primarily for daily transactions (like writing checks, using a debit card) and typically offer very little to no interest, much less than a money market account.

So, a certificate of deposit (CD) is the account that typically pays more interest than a money market account.

Answer:

A. certificate of deposit (CD)