Which option describes a bank savings account?

Question

A. An account giving 0.05% interest with no other limitations
B. A deposit that has to be maintained in the bank for 1 year in exchange of a 2% interest.
C. A "basket" of money pooled in by many investors to acquire securities based on the value of cash.
D. An investment in stocks

Answer 1

A bank savings account is best described by option A: "An account giving 0.05% interest with no other limitations."

This option aligns with the typical characteristics of a savings account, which generally offers a low interest rate while allowing for easy access to funds. Option B describes a fixed deposit account, whereas options C and D refer to investment vehicles, not savings accounts.