Funds invested in a _____ should not be withdrawn for a stated period in order to avoid an interest penalty.

Question

Quizplus · Accepted Answer

A certificate of deposit (CD) typically has a higher interest rate than a savings account or checking account, but in return, the funds invested in a CD cannot be withdrawn for a stated period of time without incurring an interest penalty. U.S. Treasury bills also have a set maturity date and penalties for early withdrawal, but they typically have lower interest rates than CDs. NOW accounts are similar to checking accounts and do not typically have penalties for withdrawals.

Funds Invested in a _____ Should Not Be Withdrawn for a Stated