A Comparison of an Interest-Bearing Checking Account and a Savings

question 131

Multiple Choice

A comparison of an interest-bearing checking account and a savings account reveals that:

• A)while a NOW account pays interest,a savings account does not.
• B)a NOW account must be held to maturity,while funds in a savings account are available on demand.
• C)deposits in checking accounts are technically demand deposits,but deposits in savings accounts are time deposits.
• D)interest earned on NOW accounts is tax deductible,while interest earned on passbook savings accounts is taxable income.

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Definitions:

Assent

Agreement or approval, often used in the context of minors or others not able to give legal consent.

Minor

A term often used to describe something of lesser importance, size, or degree, or individuals under the age of legal adulthood.

Consent

Agreement or permission given by a person after understanding what is being asked or required, crucial in ethical research practices.

Deception

Deception in research refers to misleading or withholding information from participants about the true nature of a study to prevent bias or influence the outcomes.