Question

Which of the following would be a good reason to place your money into a savings account?

a. You can purchase stocks with a savings account
b. A savings account earns interest
c. You can write checks with a savings account
d. You can use a debit card to make transactions

Answer 1

b. a savings account earns interest

Answer 2

The second alternative is correct (B).

Money loses value over time as the rate of inflation increases. In this scenario, when you have some money to spare, the ideal is to seek some kind of investment that earns interest.

Saving is one such option. The money in savings earns interest and is highly liquid, meaning it can be used at any time. In addition, saving is a very...