Question

QUESTION 5 Tamara has $500 she is looking to save for a class trip. She wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara?

A. Certificate of Deposit (CD)

B. Money Market Account

C. Savings Account

D. Checking Account

Answer 1

The correct option is A,certificate of deposit

Step-by-step explanation:

Money market account is an interest yielding account with commercial bank or other financial institution but can be accessed anytime by Tamara,hence it is not the best option available.

The same of funds being accessible is also applicable to saving and checking accounts,as a result it is only investment in certificate of deposit that meets Tamara's requirement,which implies option is the perfect option.