Final answer:
CDs offer higher interest rates compared to money market accounts due to their longer term and less liquidity.
Step-by-step explanation:
CDs, or certificates of deposit, typically offer higher interest rates compared to money market accounts. This is because when you invest money in a CD, you agree to leave it untouched for a fixed period of time, which allows banks to lend or invest that money. The longer the term of the CD, the higher the interest rate it typically offers. Money market accounts, on the other hand, usually offer lower interest rates as they are more liquid and allow for frequent withdrawals.
Learn more about CDs and Money Market Accounts