Question

Which is a true statement of Certificates of Deposit (CDs)?


The depositor can withdraw money from the account anytime.

CDs earn less money than a traditional savings account.

A savings note is issued for a set period of time.

CDs are considered an aggressive investment.

Answer 1

Answer:

A savings note is issued for a set period of time.

Explanation:

• The depositor can withdraw money from the account anytime.  FALSE

The depositor can only withdraw his/her money when the set period of time expires.

• CDs earn less money than a traditional savings account.  FALSE

 CD's earn more money than a traditional savings account, and longer term  CDs yield higher interest rates than shorter term CDs

• CDs are considered an aggressive investment. FALSE

CDs are considered very safe investments. The Federal Deposit  Insurance Corporation (FDIC) guarantees CDs (and other bank transactions) for up to $250,000.

Answer 2

Answer:

Option C.

Explanation:

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