Because it pays higher interest,a CD is considered more liquid than a passbook savings account.

Name: Because it pays higher interest,a CD is considered more liquid than a passbook savings account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A CD (Certificate of Deposit) is actually less liquid than a passbook savings account because it typically has a fixed term and early withdrawal penalties. A passbook savings account allows for immediate access to funds without penalty.

Because It Pays Higher Interest,a CD Is Considered More Liquid