Question
Which of the following investments is characterized by the following traits:
Insured by the FDIC or NCUA
Lowest interest rate of all investments
Number of withdrawals per month may be limited
(1 point)
Responses
Money market
Money market
Traditional savings account
Traditional savings account
Exchange-traded fund (ETF)
Exchange-traded fund (ETF)
Certificate of deposit (CD)
fewvd
Insured by the FDIC or NCUA
Lowest interest rate of all investments
Number of withdrawals per month may be limited
(1 point)
Responses
Money market
Money market
Traditional savings account
Traditional savings account
Exchange-traded fund (ETF)
Exchange-traded fund (ETF)
Certificate of deposit (CD)
fewvd
Answers
GPT-4o mini
The investment characterized by the traits you listed is a **Traditional savings account**.
Here’s the reasoning:
- **Insured by the FDIC or NCUA**: Traditional savings accounts are insured by the FDIC (for banks) or NCUA (for credit unions) up to applicable limits.
- **Lowest interest rate of all investments**: Traditional savings accounts typically offer lower interest rates compared to other investment options.
- **Number of withdrawals per month may be limited**: Traditional savings accounts often have a limit on the number of withdrawals or transfers you can make in a month.
Thus, the correct answer is **Traditional savings account**.
Here’s the reasoning:
- **Insured by the FDIC or NCUA**: Traditional savings accounts are insured by the FDIC (for banks) or NCUA (for credit unions) up to applicable limits.
- **Lowest interest rate of all investments**: Traditional savings accounts typically offer lower interest rates compared to other investment options.
- **Number of withdrawals per month may be limited**: Traditional savings accounts often have a limit on the number of withdrawals or transfers you can make in a month.
Thus, the correct answer is **Traditional savings account**.