Which of the following is a security in which a saver buys the security for a given time to maturity, earning interest at the specified rate?
A)Commercial paper
B)Debenture
C)Government bond
D)Certificates of deposit

Question

Quizplus · Accepted Answer

Certificates of deposit (CDs) are a type of secure investment where an individual purchases the security for a predetermined length of time, earning interest at a fixed rate. CDs are typically issued by banks or credit unions and are insured by the FDIC or NCUA, respectively. Commercial paper, debentures, and government bonds may also offer fixed interest rates, but they may not have a specified time to maturity or the same level of security as CDs.

Which of the Following Is a Security in Which a Saver