Cash equivalents like a basic savings account, money market account (MMA), and certificate of deposit (CD) can all grow your money in different ways. Understanding how each type of account works can help you decide how you should save.
Watch the video to learn more about Making Your Money Grow, then test your knowledge at the end of the lesson.
What is an example of a low-risk investment that can easily convert to cash?
A. Savings account
B. Money Market Account
C. Certificate of Deposit
D. All of the above
Compound interest is where interest earned rolls into the balance and earns more interest over time.
A. True
B. False
Which of the following is a type of savings tool best used for keeping your emergency savings?
A. Savings account
B. Money Market Account
C. Certificate of Deposit
D. All of the above