Certificates of deposit (CDs) with shorter maturity dates tend to pay higher interest rates than those with longer maturity dates.

Question

Quizplus · Accepted Answer

Certificates of deposit (CDs) with longer maturity dates typically pay higher interest rates than those with shorter maturity dates because the longer term represents a greater commitment and therefore usually comes with a higher reward in the form of interest.

Certificates of Deposit (CDs) with Shorter Maturity Dates Tend to Pay