BUISENESS MANAGEMENT
RECORD KEEPING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Savings account
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Money market account
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Certificate of deposit
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Checking account
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Detailed explanation-1: -CDs come in many shapes and sizes, but all have one common goal: to help you save money. This guide will discuss the four main types of CDs: fixed-rate, variable-rate, bump-up, and liquid. We will also discuss the pros and cons of each type so that you can decide which is right for you!
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 Deposits (CDs) may be issued by: Scheduled Commercial Banks; Regional Rural Banks; and. Small Finance Banks.
Detailed explanation-4: -Cooperative Banks and RRBs cannot issue a CD. CDs issued by SCBs have in term period anywhere between 3 months to a year. CDs issued by financial institutions have a term period ranging from 1–3 years.