Franklin is planning for a purchase of a vehicle in two years. Since he wants to be certain that his funds are safe (insured), which of the following should he use?

Question

Quizplus · Accepted Answer

Franklin should use a savings account to ensure that his funds are safe and insured. A savings account is typically insured by the Federal Deposit Insurance Corporation (FDIC) up to a certain amount, providing a low-risk option for saving money. Using a credit card or loan would result in interest charges, and using a home mortgage or trust may not be necessary or appropriate for a vehicle purchase.

Franklin Is Planning for a Purchase of a Vehicle in Two