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In general, you will receive higher rates of interest on your certificate of deposit the ____ the maturity and the ____ the dollar amount invested.

User Margaretha
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Answer:

The answer is:

In general, you will receive higher rates of interest on your certificate of deposit the longer the maturity and the higher the dollar amount invested.

Step-by-step explanation:

Interest rates are returns that an investor receive from their investment (under this situation - investment in certificate of deposit (CD)).

The higher the risk, the higher the return is required to compensate for the risk-taking of investor.

As long time commitment, that is long maturity, gives the investor higher exposure to risk and higher invested amount resulting to higher loss given default; investors will require higher return, that is - interest rate on CD, to compensate for their risk-taking.

Thus, longer and higher should be the correct choice to fill in the blank.

User Ankit Parmar
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