What Is Certificate of Deposit (CD)? Discuss the Different Types

question 93

Essay

What is certificate of deposit (CD)? Discuss the different types of CDs and the parties involved in a CD.

---

Definitions:

Self-Employment Taxes

Taxes that must be paid by individuals who work for themselves, covering Social Security and Medicare contributions.

Net Earnings

The amount of income left over after all expenses and taxes have been subtracted from total revenue, often referred to as net income.

FICA Withholding

The process of automatically deducting Social Security and Medicare taxes from an employee's paycheck, contributing to their future benefits.

FICA Tax

Taxes under the Federal Insurance Contributions Act, funding Social Security and Medicare, paid by both employees and employers.