Question

certificate of deposit
previous

has a term length that you choose and commit to no withdrawals allowed without penalty
gives a better interest rate based on how much you have in the account.
meant for
ainy day\ or emergency funds that you can access when you need to.
used for daily transactions and purchases.

Explanation:

To determine the correct description for a Certificate of Deposit (CD):

1. Analyze each option:

• "Has a term length... No withdrawals without penalty": CDs have fixed terms (e.g., 6 months, 1 year) and penalize early withdrawals.
• "Better interest rate based on balance": CDs typically have fixed rates, not variable by balance (savings accounts often do this).
• "Rainy day/emergency funds (access anytime)": CDs restrict access (penalty for early withdrawal), so this is for savings accounts.
• "Daily transactions/purchases": CDs are not used for daily spending (checking accounts are).

Answer:

Has a term length that you choose and commit to No withdrawals allowed without penalty