You Are Given Three Options

question 108

Multiple Choice

You are given three options.You may have the balance in an account that has been collecting 5 percent interest for 20 years,the balance in an account that has been collecting 10 percent interest for 10 years,or the balance in an account that has been collecting 20 percent interest for five years.Each account had the same original balance.Which account now has the lowest balance?

• A)the first one
• B)the second one
• C)the third one
• D)They all have the same balance.

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Definitions:

Thrift Institutions

Savings banks and credit unions; depository institutions that historically lent money to households.

Money Market Mutual Funds

Investment funds that invest in short-term, high-quality debt securities and aim to offer returns with minimal risk, providing investors with liquidity and a modest income.

Difficulties

Challenges or obstacles that may impede progress, require problem-solving, or necessitate adaptation.

Deregulating Banks

Deregulating Banks involves reducing the rules and regulations imposed on banks with the aim of increasing financial institutions' ability to operate freely and innovate.