Bob and Tina Cisneros want to build a $10,000 emergency fund.Which of the following would be the most appropriate choice for the emergency fund?
A)Money market deposit account
B)Two-year certificate of deposit
C)Series EE U.S. savings bonds
D)NOW account

Question

Quizplus · Accepted Answer

A money market deposit account is the best choice for an emergency fund because it offers higher interest rates than a traditional savings account, while still providing easy access to the funds in case of an emergency. A two-year CD and Series EE U.S. savings bonds would tie up the money for a period of time and may not provide the liquidity needed for an emergency. A NOW account is similar to a checking account and is not typically used for long-term savings.

Bob and Tina Cisneros Want to Build a $10,000 Emergency