Which of the following is not a characteristic of certificate of deposit (CDs)?
A)You pay a penalty for early redemption.
B)You "lock in" (are guaranteed)the stated interest if you hold the CD until maturity.
C)They are preferred over money market deposits if you expect interest rates to fall.
D)They have a minimum maturity of three years.

Question

Quizplus · Accepted Answer

CDs do not have a minimum maturity of three years; they can have a variety of maturity terms, ranging from a few months to several years.

Which of the Following Is Not a Characteristic of Certificate