In the context of financial securities, which of the following statements is true of certificates of deposit?
A) Certificates of deposit with longer maturities typically earn a lower interest rate than certificates of deposit that have shorter terms.
B) They can be cashed in before they mature without incurring any penalty.
C) They offer higher returns than most other types of investments.
D) The rate of interest paid on certificates of deposit is often higher than the rate on a regular savings account.

Question

Quizplus · Accepted Answer

Certificates of deposit (CDs) typically offer a higher interest rate than regular savings accounts because they require the depositor to leave the money in the account for a fixed term.

In the Context of Financial Securities, Which of the Following