Money Market Account: (this is intended to be used on a day-to-day basis and isn't provided by the government)
- Allows ATM withdrawals (A)
- Has a minimum balance requirement (C)
401K: (this is a retirement savings account, so think of typical features)
- Provides tax-deferred savings (B)
- Has penalties for early withdrawal (D)
Answer:
Money Market Account:
A) allows ATM withdrawals
C) has a minimum balance requirement
401K:
B) provides tax-deferred savings
D) has penalties for early withdrawal
Explanation:
A money market account is an account in a bank that pays higher interests than a normal savings account and they tend to have a minimum balance requirement. Also, they allow the money to be withdrawn at ATMs.
A 401K is a retirement plan that allows employees to save their money and it is sponsored by the employer. In this plan, the money is taken from the salary before the taxes are deducted. Also, when people withdraw money from these accounts before a certain age, they have to pay an early withdrawal penalty that is around 10% of the amount that is taken out.
