ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Funds deposited in a CD are held for a certain length of time.
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Funds deposited in a CD have tiered interest rates.
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Funds deposited in a CD are very liquid.
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Funds deposited in a CD can be accessed via check or debit card.
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Detailed explanation-1: -A certificate of deposit (CD) is defined as an investment instrument mostly issued by banks, requiring investors to lock in funds for a fixed term to earn premium rates. It is like a savings account. For example, Joe invested $5, 000 in CD with a bank at a fixed interest rate of 5% with 5 years maturity.
Detailed explanation-2: -A CD, or certificate of deposit, is a type of savings account with a fixed interest rate that’s usually higher than a regular savings account. It also has a fixed term length and a fixed date of withdrawal, known as the maturity date. You lock funds in a CD for a term generally ranging from three months to five years.
Detailed explanation-3: -Certificate of Deposit or CD is a fixed-income financial instrument governed under the Reserve Bank and India (RBI) issued in a dematerialized form. The amount at payout is assured from the beginning. A CD can be issued by any All-India Financial Institution or Scheduled Commercial Bank.
Detailed explanation-4: -Definition: A certificate of deposit (CD) is a short-term security with a fixed interest rate and maturity date issued by a bank that seeks to raise funds from the secondary money market.
Detailed explanation-5: -Fixed-Rate Certificates. Variable Certificates Of Deposit. Bump-Up Certificates. Liquid Certificates Of Deposit (No-Penalty CDs) The Next Steps. Compare CD Rates From 423 Banks And Credit Unions. Request A Quote.