QQuestionBusiness Management
QuestionBusiness Management
"Why might people choose a traditional savings account over other more aggressive savings plans? (4 points)
They fear the potential for identity theft.
They have a high risk tolerance for investing.
They want to grow their money at a fast rate.
They need to be able to withdraw funds at any time. "
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Answer
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Step 1: Understand the question
The question asks us to compare a traditional savings account with other more aggressive savings plans and identify why someone might choose a traditional savings account. We are given three options for the reasons why people might choose a traditional savings account, and our task is to determine which of these options is correct and relevant.
Step 2: Evaluate the first option
The first option is that people might choose a traditional savings account because they fear the potential for identity theft. This option is not necessarily true or false, as it depends on the individual's circumstances and concerns. However, it is not directly related to the comparison between a traditional savings account and other savings plans. Therefore, we can eliminate this option as a reason why someone might choose a traditional savings account over other savings plans.
Final Answer
People might choose a traditional savings account over other more aggressive savings plans because they need to be able to withdraw funds at any time, or because they have a low risk tolerance for investing.
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