Question
In: Finance
In the context of financial securities, certificates of deposit: options: with longer maturities typically earn a...
In the context of financial securities, certificates of deposit:
options:
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with longer maturities typically earn a higher interest rate than certificates of deposit that have shorter terms. |
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can be cashed in before they mature without incurring any penalty. |
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offer higher returns than most other types of investments. |
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are not insured by the Federal Deposit Insurance Corporation, making them the least safe investment option. |
Solutions
Expert Solution
A) with longer maturities typically earn a higher interest rate than certificates of deposit that have shorter terms.
Explanation: A longer COD has higher rate than short term COD.
A COD is ensured by FDIC.
A COD incurs penalty for early withdrawal.
A COD offers higher returns than normal savings.
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