4
QuizMultiple Choice

Banking: How to Manage Your Money — Quiz

Question 4 • Economics

Which of these is a characteristic of certificates of deposit (CDs)?

Answer
A
They can be opened with any amount of money.
B
They last for a set period of time.
C
They allow access to the money at any time without penalty.
D
They are always offered at variable rates.

Explanation

A certificate of deposit holds your money for a specified term, such as six months or one year. That set period is a defining characteristic of CDs. Withdrawing money before the term ends usually results in a penalty, so they do not provide penalty-free access at any time.

AI-written and checked against the verified answer.

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