When Purchasing a Certificate of Deposit (CD)

question 29

Multiple Choice

When purchasing a certificate of deposit (CD) ,

• A) you are always better off to buy the longer-term CDs.
• B) you will earn more interest percentage-wise on the lower dollar CDs.
• C) the amount you invest is at risk, so choose carefully.
• D) it is wise to shop around as rates vary among financial institutions.

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Definitions:

Control Group

A group in an experiment that does not receive the treatment being tested and is used as a benchmark to measure how the other tested subjects do.

Experimental Group

The group in an experiment that receives the treatment or intervention being tested, as opposed to the control group which does not.

Random Assignment

A procedure in research design that ensures every participant has an equal chance of being placed into any given group to reduce biases.

Ethical Research

Conducting studies and experiments in accordance with established moral principles and guidelines to ensure the welfare of participants.