Question

Because certificates of deposit require that the deposited funds remain on deposit for a specified period of time they are subject to

a) High fees
b) Low interest rates
c) Early withdrawal penalties
d) Tax benefits

Answer 1

A certificate of deposit (CD) is a financial asset where a certain amount of money is deposited in a bank for a specified period of time.

Step-by-step explanation:

A certificate of deposit (CD) is a financial asset where a certain amount of money is deposited in a bank for a specified period of time. In return, the bank pays a higher interest rate compared to a regular savings account. However, early withdrawal from a CD is subject to a substantial penalty.