The yield offered on a CD depends on the credit rating of the issuing bank and the maturity of the CD but not on the supply and demand for CDs.

Question

Quizplus · Accepted Answer

The yield on a CD is influenced by various factors including the credit rating of the issuing bank, the maturity of the CD, and also the supply and demand for CDs in the market. Higher demand or lower supply can lead to higher yields, and vice versa.

The Yield Offered on a CD Depends on the Credit