International Association of Accessibility Professionals (IAAP) Certified Administrative Professional (CAP) Practice Exam

What is a savings account typically characterized by?

1. High-interest loans and credit features

2. Interest on deposits without checks or debit cards

3. Immediate access to funds without penalties

4. Investment opportunities in the stock market

The correct answer is: Interest on deposits without checks or debit cards

A savings account is typically characterized by earning interest on deposits while restricting the use of checks or debit cards for transactions. This allows individuals to accumulate interest on the money held in the account without the temptation to withdraw funds frequently, promoting saving. The absence of check-writing capabilities and limitations on debit card usage help to maintain the focus on saving rather than spending, differentiating it from other types of accounts such as checking accounts. The primary purpose of a savings account is to provide a safe place for individuals to store money while earning interest over time. In contrast, the other options represent features more aligned with different financial products or services. High-interest loans and credit features pertain to borrowing rather than saving. Immediate access to funds without penalties might describe certain types of accounts or investment options but does not specifically define a savings account, where there are usually some limitations placed on withdrawals. Investment opportunities in the stock market refer to investment accounts rather than savings accounts, which are designed primarily for savings.