quiz\nquestion 4 of 8\nwhy do financial institutions offer you higher interest rates for certificates of…

quiz\nquestion 4 of 8\nwhy do financial institutions offer you higher interest rates for certificates of deposit (cds)?\nselect a response.\nthey are paying you back for fees and interest that you have prepaid.\nthe interest you earn is only borrowed and must be repaid at the end of the term.\nyou must keep your money in the account for a set amount of time.\nyoull be required to invest your interest funds with the same institution.

quiz\nquestion 4 of 8\nwhy do financial institutions offer you higher interest rates for certificates of deposit (cds)?\nselect a response.\nthey are paying you back for fees and interest that you have prepaid.\nthe interest you earn is only borrowed and must be repaid at the end of the term.\nyou must keep your money in the account for a set amount of time.\nyoull be required to invest your interest funds with the same institution.

Answer

Brief Explanations:

Certificates of Deposit (CDs) require customers to keep their money in the account for a fixed - term. Financial institutions offer higher interest rates as compensation for the lack of liquidity during this period.

Answer:

You must keep your money in the account for a set amount of time.