In the context of financial securities, certificates of deposit:
A) are considered to be among the safest investment options because of their predictable rate of return.
B) are similar to savings accounts as both are issued for a variable term that can range from six months to ten years.
C) offer higher returns than most other types of investments.
D) can be cashed in before they mature without incurring any penalty.

Question

Quizplus · Accepted Answer

Certificates of deposit (CDs) are considered safe investments because they offer a fixed interest rate and are typically insured by the FDIC, providing a predictable rate of return.

In the Context of Financial Securities, Certificates of Deposit