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A Certificate of Deposit Is a Type of Savings Account

Question 44

Multiple Choice

A certificate of deposit is a type of savings account that pays


A) an increasing rate of interest on funds left on deposit for a certain period of time.
B) a fixed rate of interest on funds left on deposit for a certain period of time.
C) a rate based on the depository bank's credit quality.
D) a rate that changes based on inflation.

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