Roderick has made an investment in a credit union for a fixed term of four years. He receives a high interest rate on it. However, because of unexpected financial difficulties, Roderick is forced to cash in before the investment reaches its maturity and ends up incurring a heavy penalty. In the context of financial securities, Roderick has most likely invested in:
A) corporate stocks.
B) government securities.
C) certificates of deposit.
D) corporate bonds.

Question

Quizplus · Accepted Answer

Certificates of deposit (CDs) are time deposits with fixed terms and typically offer higher interest rates. Withdrawing funds before maturity usually incurs penalties.

Roderick Has Made an Investment in a Credit Union for a Fixed