Question

What is true about certificates of deposit?

They offer lower interest rates than savings account.
They are the most liquid account available.
The money has to remain in the account for a specified period of time.
All of the above are true.

Answer 1

I would say "The money has to remain in the account for a specified period of time." Because banks can choose to compound rates in a monthly, quarterly, or yearly. And they reward you for putting money in their bank for a certain amount of time

Answer 2

Answer: The answer is (c) The money has to remain in the account for a specified period of time.

Step-by-step explanation: A certificate of deposit (CD) is a type of savings account having a fixed interest rate and fixed date of withdrawal, which is called as the maturity date.

The interest rates may be low or high and they are moderately liquid accounts.

Since the date of withdrawal is fixed, so the amount of money has to remain in the account for a specified period of time.

Thus, the correct option is (c). The money has to remain in the account for a specified period of time.