4
practice testMultiple Choice

Practice Test

Question 4 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

One advantage to buying a CD is that it

Answer
A
can be purchased for different amounts.
B
can be used for long-term retirement.
C
is high risk but backed by the government.
D
is high risk but comes with great rewards.

Explanation

A certificate of deposit (CD) is a savings product that typically earns interest over a set term. One advantage is that CDs are available with different minimum deposit amounts, so people can choose one that fits their budget. The choice “can be purchased for different amounts” is correct; CDs are generally low risk, not high risk.

AI-written and checked against the verified answer.

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