ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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CD
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stock
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bond
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mutual fund
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Detailed explanation-1: -A certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe way. Like savings accounts, CDs are considered low risk because they are FDIC-insured up to $250, 000.
Detailed explanation-2: -Money market accounts (MMAs) and certificates of deposit (CDs) are types of federally insured savings accounts that earn interest. But their rates and ease of access differ. CDs tend to have higher rates than money market accounts and give no access to your money until a term ends.
Detailed explanation-3: -CD Account Certificates of deposit (CDs) are time deposits, meaning you agree to leave your money in the account for a set period. During that time, your money earns interest and, when the CD matures, you typically can withdraw your savings or roll it into a new CD.
Detailed explanation-4: -A certificate of deposit (CD) is a type of savings account that requires the account holder to leave their money in the account for a specified amount of time, known as the CD “term, ” in exchange for earning a fixed rate of interest.