In general,the longer the term of a certificate of deposit,the:
A)higher is its liquidity.
B)higher is its interest rate.
C)lower is its value.
D)lower is its interest rate.
E)higher is its inflation rate.

Question

Quizplus · Accepted Answer

Typically, the longer the term of a certificate of deposit (CD), the higher the interest rate offered by the financial institution. This is because the customer is agreeing to lock up their funds for a longer period, and banks usually offer a higher rate as an incentive for this longer commitment.

In General,the Longer the Term of a Certificate of Deposit,the