Certificates of Deposit (CDs) Tend to Pay Higher Rates of Interest

question 24

Multiple Choice

Certificates of deposit (CDs) tend to pay higher rates of interest than money market accounts because

• A)CDs are not government insured and therefore are riskier investments than money market accounts.
• B)the required minimum investment for CDs is higher than for money market accounts.
• C)there are higher annual fees charged for CDs than for money market accounts.
• D)the investor agrees to leave his or her money in the CD for a specified period of time while he or she has free access to the funds in a money market account.

---

Definitions:

Carpet Factory

A manufacturing facility where carpets and rugs are produced, typically involving various stages of design, weaving, and finishing.

Global Corporation

A multinational enterprise or multinational corporation that conducts commercial transactions across national boundaries.

Multinational Corporation

A large company that operates in several countries around the world, often centralizing management in a specific home country while adapting products and practices to local markets.

Sustainable Development

is the pursuit of development that meets the needs of the present without compromising the ability of future generations to meet their own needs.