The primary difference between large (jumbo) and small Certificates of Deposit, besides dollar amount, is:
A)that jumbo certificates have a variable interest rate.
B)that small certificates are considered to be risk-free.
C)that there is no secondary market for small certificates of deposit.
D)None of the above

Question

Quizplus · Accepted Answer

One main difference between the two CDs, besides the dollar amount, is that there may be a secondary market for the large CDs, which allows these investors to maintain their liquidity without suffering an interest penalty.

The Primary Difference Between Large (Jumbo) and Small Certificates of Deposit