Guaranteed investment certificates (GICs)with shorter maturity dates tend to pay higher interest rates than those with longer maturity dates.

Question

Quizplus · Accepted Answer

This statement is false. Generally, GICs with longer maturity dates tend to pay higher interest rates than those with shorter maturity dates. This is because the bank or financial institution can use the funds for a longer period of time and therefore can offer a higher return on investment.

Guaranteed Investment Certificates (GICs)with Shorter Maturity Dates Tend to Pay