(01.08 MC) Which of the following is a cost, or consequence, of choosing an investment account, such as a CD, over a traditional savings account? Investments will typically earn a higher rate of interest Investments usually limit access to the deposited funds. Investments that lose value can reduce credit scores. Investments offer greater security from fraud and theft

## Step 1<br />The problem is asking us to identify the cost or consequence of choosing an investment account, such as a Certificate of Deposit (CD), over a traditional savings account. <br /><br />## Step 2<br />Let's analyze each option:<br /><br />1. "Investments will typically earn a higher rate of interest": This is not a cost or consequence, but rather a benefit of choosing an investment account.<br /><br />2. "Investments usually limit access to the deposited funds": This is a cost or consequence of choosing an investment account. Unlike a traditional savings account, where you can access your money at any time, an investment account like a CD has a fixed term. If you withdraw the money before the term ends, you may face penalties.<br /><br />3. "Investments that lose value can reduce credit scores": This is not a direct consequence of choosing an investment account. Credit scores are typically affected by factors such as payment history and the amount of debt you have, not the value of your investments.<br /><br />4. "Investments offer greater security from fraud and theft": This is not a cost or consequence, but rather a benefit of choosing an investment account.