Amber wants to open an account, but she doesn't know which kind is appropriate. She is interested in earning a higher interest rate and plans to keep at least $1,000 in her account so she can avoid paying a fee. Amber wants to open her account at an investment company and understands that her account will not be covered by federal deposit insurance. What kind of account should she open?

Question

Business

Thalia Pitts

29 September, 08:32

Amber wants to open an account, but she doesn't know which kind is appropriate. She is interested in earning a higher interest rate and plans to keep at least $1,000 in her account so she can avoid paying a fee. Amber wants to open her account at an investment company and understands that her account will not be covered by federal deposit insurance. What kind of account should she open?

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Answers (1)

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Laney Wilson · Answer 1

money market fund

Explanation:

Based on the information provided within the question it can be said that the kind of account that Amber should open is a money market fund. The reason being that this is a fund that has a small time of maturity (usually 13 months) and since it includes investments that are low risk but with high rewards such as cash equivalent securities. Since this is exactly what Amber is looking for then we can say that this is the account that she should open.