3
QuizMultiple Choice

Saving and Investing

Question 3 • WA-Financial Education

Which goal is most likely to be met with a certificate of deposit?

Answer
A
saving enough for retirement
B
making a large profit on the investment
C
keeping money safe while earning some interest
D
reducing amount of taxable income

Explanation

A certificate of deposit (CD) is a bank deposit that typically earns a set amount of interest over a fixed term, while keeping the deposited money relatively safe. It is not intended to generate a large profit, provide a complete retirement plan, or reduce taxable income. Therefore, the best choice is keeping money safe while earning some interest.

AI-written and checked against the verified answer.

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