quiz question 4 of 8 why do financial institutions offer you higher interest rates for certificates of…

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

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

Answer

Brief Explanations:

Financial institutions offer higher - interest rates on CDs because they require customers to keep their money in the account for a set amount of time. This gives the institution more stable access to the funds for a longer period, allowing them to use the money for various lending and investment activities with more certainty.

Answer:

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