Savings accounts pay very low rates of interest. The average return on the stock market is about 10-12%, in the long run. Why would anyone put money into a savings account?
What will be an ideal response?
The stock market gives a higher return for higher risk. Particularly if you are very averse to risk, you might find the savings account to be an attractive alternative.
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Which of the following activities would occur in a resource market?
a. Reesa buys a new computer to help balance her personal checkbook. b. Randy pays a speeding ticket. c. Ian mows his grass. d. Pam buys a ticket to the ball game. e. General Motors hires additional workers to run a third shift at its Flint, Michigan, factory.
If the Fed conducts open-market sales, which of the following quantities increase(s)?
a. interest rates, prices, and investment spending b. interest rates and prices, but not investment spending c. interest rates and investment, but not prices d. interest rates, but not investment or prices