QuestionAugust 16, 2025

Savings accounts are a safe investment because: they are insured by the FDIC for 250,000 they are predictable they are secured in a vault the interest rate is fixed

Savings accounts are a safe investment because: they are insured by the FDIC for 250,000 they are predictable they are secured in a vault the interest rate is fixed
Savings accounts are a safe investment because:
they are insured by the FDIC for 250,000
they are predictable
they are secured in a vault
the interest rate is fixed

Solution
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Answer

Savings accounts are a safe investment because they are insured by the FDIC for 250,000, they are predictable, and they are secured in a vault. Explanation 1. Identify FDIC Insurance Savings accounts are insured by the FDIC for up to 250,000, providing security against bank failure. 2. Predictability of Returns The interest rate on savings accounts is typically fixed, making returns predictable. 3. Security Measures Funds in savings accounts are secured in a vault, ensuring physical safety.

Explanation

1. Identify FDIC Insurance<br /> Savings accounts are insured by the FDIC for up to $250,000$, providing security against bank failure.<br /><br />2. Predictability of Returns<br /> The interest rate on savings accounts is typically fixed, making returns predictable.<br /><br />3. Security Measures<br /> Funds in savings accounts are secured in a vault, ensuring physical safety.
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