Eric has $1,000 and would like to use it to start a savings program.He will add to the program regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

Question

Quizplus · Accepted Answer

A money market deposit account is a type of savings account that typically offers higher interest rates than a traditional savings account. It also allows for easy access to funds, making it a good choice for someone who wants to regularly add to their savings program. The other options listed (Series EE savings bonds, certificates of deposit, U.S. Treasury bills, and NOW accounts) may offer higher interest rates, but they are typically less flexible and may require a longer-term commitment.

Eric Has $1,000 and Would Like to Use It to Start