8. Because checking accounts are liquid for the depositor than savings accounts, they earn interest rates. A) less; higher B) less; lower C) more; higher D) more; lower
Question
- Because checking accounts are liquid for the depositor than savings accounts, they earn interest rates. A) less; higher B) less; lower C) more; higher D) more; lower
Solution
The correct answer is D) more; lower. Checking accounts are more liquid because you can withdraw money at any time without any restrictions. However, because of this liquidity, they usually have lower interest rates compared to savings accounts, which have restrictions on withdrawals but offer higher interest rates.
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