Sally wants to leave her money ($1,000)with a bank for a set period of time to earn a higher rate of interest.She does not plan to make an early withdrawal,because early withdrawals are subject to penalties.The best investment in her case is a:

Question

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A certificate of deposit (CD) is the best choice for Sally because it allows her to earn a higher interest rate for a set period of time without the risk of early withdrawal penalties. CDs offer higher interest rates than passbook savings accounts and commercial drafts, and are less risky than foreign currency deposits.

Sally Wants to Leave Her Money ($1,000)with a Bank for a Set