23
QuizMultiple Choice

Insurance — Unit test

Question 23 • Personal Finance - SC 26-27 (For Credit)

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

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

Explanation

A certificate of deposit keeps money deposited for a specified term, such as six months or one year. Withdrawing the money before the term ends usually results in a penalty, so CDs do not provide penalty-free access at any time. The correct choice is “They last for a set period of time.”

AI-written and checked against the verified answer.

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