Question

certificate of deposit (cd) accounts offer a wide range of benefits, but also have some drawbacks. which one of these is a drawback of cds? choose 1 answer: a no access to your funds for a period of time b lower interest rates than most other bank accounts c can decrease in value if stock market drops d limited number of free withdrawals

Explanation:

• Option A: CDs typically require you to keep funds deposited for a fixed term (e.g., 6 months, 1 year), and accessing funds before maturity usually incurs penalties or is restricted, so this is a drawback.
• Option B: CDs generally have higher interest rates than savings accounts, so this is incorrect.
• Option C: CDs are not tied to the stock market; their value is based on the agreed - upon interest rate and principal, so this is incorrect.
• Option D: CDs don't have a "free withdrawal" concept in the same way as some checking/savings accounts; the main restriction is the fixed term, not a limited number of free withdrawals.

Answer:

A. no access to your funds for a period of time