which of the following are advantages of certificates of deposit (cds) over savings accounts? i. cds are…

which of the following are advantages of certificates of deposit (cds) over savings accounts? i. cds are more readily accessible than savings accounts. ii. cds offer greater interest rates than savings accounts. iii. cds have greater fdic backing than savings accounts. a. i and ii b. ii only c. i and iii d. none of these please select the best answer from the choices provided

which of the following are advantages of certificates of deposit (cds) over savings accounts? i. cds are more readily accessible than savings accounts. ii. cds offer greater interest rates than savings accounts. iii. cds have greater fdic backing than savings accounts. a. i and ii b. ii only c. i and iii d. none of these please select the best answer from the choices provided

Answer

Brief Explanations:

Savings accounts offer more liquidity as funds can be accessed easily, so I is incorrect. CDs typically offer higher - interest rates than regular savings accounts as they require the depositor to keep the money locked up for a fixed term, so II is correct. Both CDs and savings accounts have the same FDIC insurance coverage limits, so III is incorrect.

Answer:

B. II only