Question

in which situation would a certificate of deposit (cd) be the best banking choice? samuel is setting money aside but still needs emergency access to it. hafsa wants a guaranteed return, and wont need the money for several years. darten is looking for an investment that has a very high interest rate. raj is looking for an investment with a fast return so he can reinvest.

Explanation:

Certificates of Deposit (CDs) offer guaranteed, fixed returns, but require the money to be locked in for a set term (often several years) with penalties for early withdrawal. They are not suitable for those needing emergency access, fast reinvestment, or extremely high returns (as high-yield options often carry more risk). The only scenario matching CD benefits is needing a guaranteed return without needing the funds for multiple years.

Answer:

B. Hafsa wants a guaranteed return, and won't need the money for several years.