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What's one disadvantage of a certificate of deposit (CD) as compared to a passbook savings account?

A. Depositors must keep their money in the account for a fixed period of time.
B. CDs are less risky.
C. CDs earn a lower interest rate.
D. CDs are less safe.

User Jason Zhu
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A. Depositors must keep their money in the account for a fixed period of time.
User Nii Laryea
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Answer: A. Depositors must keep their money in the account for a fixed period of time.

Explanation:

A certificate of deposit (CD) is known to be a short term security which does not allow depositors to withdraw money from the account on demand. In other word, depositors are not permitted to withdraw until the maturity date. Thus, it has a high interest rate.

A passbook savings account is a saving account in which the account holder uses a paper book for transaction in the banking hall.

User Tempus
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