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lesson pretestMultiple Choice

Pretest

Question 1 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

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

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

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.

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