ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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time deposit (CDs)
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commercial paper
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government bonds
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treasury bills
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Detailed explanation-1: -A time deposit is an interest-bearing bank account that has a date of maturity, such as a certificate of deposit (CD). The money in a time deposit must be held for the fixed term to receive the interest in full. Typically, the longer the term, the higher the interest rate that the depositor receives.
Detailed explanation-2: -A time deposit (also known as a term deposit or fixed deposit) is a type of bank account that earns a fixed interest but can’t be withdrawn over a specified term or period.
Detailed explanation-3: -A savings account is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash you want available for short-term needs.
Detailed explanation-4: -An interest-bearing account is a type of bank account that pays the customer an interest rate in exchange for them depositing their money at the bank. The return and interest rate offered will vary by bank and depend on the account terms and conditions. They can also change over time.
Detailed explanation-5: -The term current deposit refers to a deposit to a bank account or financial institution without a specified maturity date.