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Which goal is most likely to be met with a certificate of deposit? saving enough for retirement making a large profit on the investment keeping money safe while earning some interest reducing amount of taxable income

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Final answer:

A certificate of deposit is best suited for keeping money safe while earning some interest but is not ideal for retirement savings or making a large profit, nor does it reduce taxable income. The correct answer is option c.

Step-by-step explanation:

The goal most likely to be met with a certificate of deposit (CD) is keeping money safe while earning some interest. CDs are financial assets that involve depositing a certain amount of money in a bank for a fixed period of time, often ranging from a few months to several years. By doing so, the bank agrees to pay a higher interest rate compared to a regular savings account.

However, they generally do not yield high enough returns for goals such as saving enough for retirement or making a large profit. Additionally, CDs do not directly reduce taxable income; though, the interest earned may be taxed at a different rate depending on one's overall financial situation.

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