Lahn placed $100 in a certificate of deposit. After three years he received 10 percent interest on the $100. This is an example of a ________ deposit, which can be further classified as a form of ________.
A) demand; M1
B) bond; NOW
C) time; M2
D) paper; M1
E) promissory; M2

Question

Quizplus · Accepted Answer

A certificate of deposit is a type of time deposit, which is part of M2 money supply classification.

Lahn Placed $100 in a Certificate of Deposit