which of the following best describes a certificate of deposit (cd)?\na highly liquid deposit that can be…
which of the following best describes a certificate of deposit (cd)?\na highly liquid deposit that can be withdrawn at any time\na deposit that the depositor cannot access until the term expires\na deposit that does not earn any interest but provides financial security
Answer
Brief Explanations:
A certificate of deposit (CD) is a time - deposit with a fixed term. Depositors cannot access the funds until the term expires without incurring penalties. It typically earns interest. The first option describes a highly liquid account like a savings or checking account, and the third option is incorrect as CDs earn interest.
Answer:
a deposit that the depositor cannot access until the term expires