In the context of financial securities, certificates of deposit:
A) with longer maturities typically earn a higher interest rate than certificates of deposit that have shorter terms.
B) can be cashed in before they mature without incurring any penalty.
C) offer higher returns than most other types of investments.
D) are not insured by the Federal Deposit Insurance Corporation, making them the least safe investment option.

Question

Quizplus · Accepted Answer

Certificates of deposit (CDs) with longer maturities usually offer higher interest rates to compensate for the longer time the money is tied up.

In the Context of Financial Securities, Certificates of Deposit