What is the difference between a long-term savings account and a short-term savings account?

Question

Question 8 options:

A)

The amount of time the money stays in the account.

B)

The amount of time you need to go without having any debt.

C)

The amount of money placed in the account.

D)

The amount of time since you filed for bankruptcy.

Answer 1

The correct option that describes the difference between a long-term savings account and a short-term savings account is:

A) The amount of time the money stays in the account.

Long-term savings accounts are generally intended for funds that will be kept for an extended period, often years, while short-term savings accounts are meant for funds that may be used within a shorter time frame, typically a few months to a couple of years.