Eric Has $1,000 and Would Like to Use It to Start

question 132

Multiple Choice

Eric has $1,000 and would like to use it to start a savings program.He will add to the program regularly by investing $50 per month in a liquid account.Which of the following types of accounts would be most appropriate in this situation?

• A)Series EE savings bonds
• B)Money market deposit account
• C)Certificates of deposit
• D)U.S. Treasury bills
• E)NOW account

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Definitions:

Performance Period

The specific timeframe over which the output or effectiveness of an activity or individual is measured.

Reinforcement Theory

A motivational theory suggesting that people are likely to repeat behavior that is rewarded and avoid behavior that is punished.

Operant Conditioning

An educational method where the intensity of an action is altered through rewards or penalties.

Strategies

Plans of action designed to achieve a specific goal or set of goals.