Why Do CDs Have Higher Interest Rates Than Savings Accounts

question 40

Multiple Choice

Why do CDs have higher interest rates than savings accounts?

• A)CDs are much riskier investments than savings accounts.
• B)Interest on CDs is taxable while interest on savings accounts is not.
• C)CDs provide better hedges against inflation than do savings accounts.
• D)CDs are not as liquid as savings accounts.

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Definitions:

Openness To Experience

One of the Big Five personality traits, characterized by a willingness to try new things, engaging in imaginative activities, and appreciating various forms of art and beauty.

Openness To Experience

A personality trait that features an individual's willingness to try new activities, engage in creative endeavors, and embrace novel ideas.

Agreeableness

A personality trait characterized by empathy, kindness, and cooperation.

Acts Of Aggression

Behaviors or actions taken with the intent to harm or injure another person, either physically or psychologically.