Which of the following is false?

Which of the following is false?

• A. Historically, savings accounts earn higher returns than stock investments.
• B. Savings accounts are low-risk investments.
• C. Checking accounts typically offer no interest.
• D. Money market accounts often have higher interest rates than regular savings accounts.

Answer: (C)

The assertion that checking accounts typically offer no interest is indeed correct. While many traditional checking accounts do not earn interest, it's important to recognize that this may not hold true for all checking accounts offered today. Some financial institutions provide interest-bearing checking accounts that can offer a small return, although these rates tend to be lower than those of savings accounts or other investment vehicles. In contrast, savings accounts generally offer higher returns than what’s typically provided by checking accounts, making option A misleading. Furthermore, savings accounts are designed for low-risk investment, which aligns with option B being accurate. Money market accounts also frequently offer better interest rates compared to standard savings accounts, affirming that option D is valid. The evaluation of these aspects highlights the nuances in banking products and their respective benefits, assisting in a clearer understanding of the characteristics of savings and checking accounts.

The assertion that checking accounts typically offer no interest is indeed correct. While many traditional checking accounts do not earn interest, it's important to recognize that this may not hold true for all checking accounts offered today. Some financial institutions provide interest-bearing checking accounts that can offer a small return, although these rates tend to be lower than those of savings accounts or other investment vehicles.

In contrast, savings accounts generally offer higher returns than what’s typically provided by checking accounts, making option A misleading. Furthermore, savings accounts are designed for low-risk investment, which aligns with option B being accurate. Money market accounts also frequently offer better interest rates compared to standard savings accounts, affirming that option D is valid.

The evaluation of these aspects highlights the nuances in banking products and their respective benefits, assisting in a clearer understanding of the characteristics of savings and checking accounts.