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Which Statement Is TRUE of a Certificate of Deposit

Question 57

Multiple Choice

Which statement is TRUE of a certificate of deposit?


A) It is a good investment if you need immediate access to cash, but do not need liquidity.
B) It is an investment in which a person promises to leave his or her money in the bank for six months or more.
C) It is the easiest place to put your money.
D) It will give you a slightly lower rate of return than a savings account.
E) Although relatively low-risk, it is not FDIC-insured.

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