A(n)____ guarantees the owner a fixed or floating interest rate for predetermined period of time with full return of the initial amount invested.

Question

Quizplus · Accepted Answer

A guaranteed investment contract (GIC) typically offers a fixed or floating interest rate for a predetermined period of time (usually ranging from a few months to several years) and guarantees the investor the return of the initial amount invested. This makes it a relatively low-risk investment option for those who seek to preserve their principal investment while earning a fixed return. Therefore, option A is the best choice for the given scenario.

A(n)____ Guarantees the Owner a Fixed or Floating Interest Rate