Dexter invests in Adderson & Lipton Co., a local bank in Arizona. He makes an investment that will reach maturity after a fixed term of two years. Dexter will regularly receive an interest on his investment, and this interest will be substantially higher than the interest he receives on the savings account he has in the same bank. In the context of financial securities, Dexter has invested in _____.
A) corporate stocks
B) government securities
C) certificates of deposit
D) corporate bonds

Question

Quizplus · Accepted Answer

Dexter has invested in certificates of deposit (CDs), which are time deposits offered by banks with a fixed term and typically offer higher interest rates than regular savings accounts.

Dexter Invests in Adderson & Lipton Co