Amber wants to open an account, but she doesn't know which kind is appropriate. She is interested in earning a higher interest rate and plans to keep at least $1,000 in her account so she can avoid paying a fee. Amber wants to open her account at an investment company and understands that her account will not be covered by federal deposit insurance. What kind of account should she open?

Question

Quizplus · Accepted Answer

A money market fund is the correct choice for Amber because it is typically offered by investment companies and can offer higher interest rates compared to traditional savings accounts. Unlike the other options listed, money market funds are not covered by federal deposit insurance, aligning with Amber's understanding and requirements.

Amber Wants to Open an Account, but She Doesn't Know