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Which of the Following Is True Regarding Guaranteed Investment Certificates

Question 49

Multiple Choice

Which of the following is true regarding guaranteed investment certificates (GICs) ?


A) The longer the term,the lower the interest rate paid,all else equal.
B) All banks offer the same rates on GICs.
C) Early withdrawals of money are not subject to a penalty.
D) Much higher interest rates (than competitors) would likely reflect higher risk.

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