ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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money market account
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youth savings account
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credit union account
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callable certificate of deposit
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Detailed explanation-1: -The correct answer is ‘callable certificate of deposit’. Financial institutions can recall these before they reach maturity.
Detailed explanation-2: -What is a CD account? A certificate of deposit (CD) account is an alternative to a traditional savings account. A CD account typically requires a higher minimum balance than savings accounts, and your funds will usually remain on deposit for a fixed period of time (the “term” of the account).
Detailed explanation-3: -A callable certificate of deposit (CD) is an FDIC-insured CD that contains a call feature similar to other types of callable fixed-income securities. Callable CDs can be redeemed (called away) early by the issuing bank prior to their stated maturity, usually within a given time frame and at a preset call price.
Detailed explanation-4: -Scheduled Commercial Banks; Regional Rural Banks; and. Small Finance Banks. 04-Jun-2021
Detailed explanation-5: -Roll the proceeds into a new CD at that institution. Transfer the funds into another account at that bank. Withdraw the proceeds.