ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Certificate of Deposits
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Savings Bonds
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Stocks
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Savings Accounts
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Detailed explanation-1: -A certificate of deposit (CD) is called a “term deposit” because the depositor agrees to keep it with a financial institution for a specified amount of time. The end of that fixed term, whether it’s six months or 60 months, is called the maturity date.
Detailed explanation-2: -A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest. When you cash in or redeem your CD, you receive the money you originally invested plus any interest.
Detailed explanation-3: -A certificate of deposit (CD) generally earns savers a fixed annual percentage yield (APY) on money that’s deposited for a set period. Typically, the APY on a CD is higher than a bank’s savings account since it requires your funds to be locked in for the term of the CD.