Question

Bernadette wants to set aside some money, but she wants to have easy access to it without penalty. She is not worried about earning a large amount of interest. Which of the following investments best suits her needs?
a. Certificate of deposit
b. Government bond
c. Money market account
d. Traditional savings account

Answer 1

Answer:

d. Traditional savings account

Explanation:

Traditional saving account is the only option which offers easy access to the funds and no penalty on withdrawl. Whereas it pays very low interestrate on the funds deposited. While all the others are long term investment  and require a time duration to access the funds. There is always a penalty for early maturity of the investment in all the investment type given except Traditional saving account.