a certificate of deposit pays a higher interest rate than a savings account because the money is\n…

a certificate of deposit pays a higher interest rate than a savings account because the money is\n guaranteed by the government.\n kept by banks for a longer time period.\n loaned to banks by consumers.\n immediately available to consumers.

a certificate of deposit pays a higher interest rate than a savings account because the money is\n guaranteed by the government.\n kept by banks for a longer time period.\n loaned to banks by consumers.\n immediately available to consumers.

Answer

Brief Explanations:

A certificate of deposit (CD) requires money to be deposited for a fixed - term. Since banks can use this money for a longer time compared to savings accounts (where money can be withdrawn easily), they offer a higher interest rate. It's not about government guarantee (both can have some level of protection), and money in a CD isn't immediately available to consumers. Also, it's not about consumers loaning to banks in the traditional sense.

Answer:

kept by banks for a longer time period.