Question

an increase or decrease in interest rates can result in both pros and cons. how does an increase in interest rates affect your savings account? choose 1 answer: a it decreases the earnings of your savings. b the earnings in your savings are not affected. c it gives you more earnings in your savings account. d it increases your account fees.

Explanation:

Savings accounts earn interest based on the interest rate. When the interest rate increases, the amount of interest earned (which is part of the earnings from the savings account) also increases. Option A is incorrect because an interest rate increase should not decrease earnings. Option B is incorrect as interest rate changes do affect savings earnings. Option D is incorrect because interest rates and account fees are not directly related in this way.

Answer:

C. It gives you more earnings in your savings account.