Answer:
The correct answer is letter "A": It earns interest, plus it earns interest on the interest.
Explanation:
In banking, the money individuals save in their accounts is used by the financial institutions in different investment instruments being the most basic lending those sources to other individuals or institutions. Account-holders, though, benefit from the interest rate set at the moment of selecting their bank accounts. If a compounded interest rate was chosen, the account holder will get interest over the interest that the bank computes periodically.
