In which situation would a certificate of deposit (cd) be the best banking choice?

In which situation would a certificate of deposit be the best banking choice?

In which situation would a certificate of deposit (CD) be the best banking choice? Samuel is setting money aside but still needs emergency access to it. Hafsa wants a guaranteed return, and won’t need the money for several years. Darren is looking for an investment that has a very high interest rate.

In which situation would a certificate of deposit CD be the best banking choice Brainly?

Answer: b. Hafsa wants a guaranteed return, and won’t need the money for several years. A certificate of deposit is a savings instrument with a fixed maturity and a fixed interest rate. However, it requires funds to be locked up until maturity.

In which situation would a savings bond be the best investment?

if you need access to your cash quickly. if you are saving each month for a new car. if you are putting aside a chunk of money to purchase a house in five years. if you have a large amount of money to save at one time.

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

The correct answer is B. The certificates of deposit last for a set period of time. A certificate of deposit (CD) is a special type of savings account, offered by banks and credit unions. In general, the investor must keep the funds on the CD for a specific period of time to avoid penalties.26 мая 2017 г.

Which would be the best action for Karina to take?

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Where do banks get money to lend to borrowers the bank’s Managementtheir Shareholdersthe money Markettheir depositors?

Banks obtain funds by borrowing and by issuing other liabilities, such as deposits. Then they use these funds to acquire assets such as securities and loans. Banks make profits by earning interest on their asset holdings of securities and loans that is higher than the interest and other expenses on their liabilities.

What is benefit of buying savings bonds?

Unlike some other types of cash investments, you can purchase saving bonds with very small amounts of money as low as $25. Tax benefits. Interest earned on savings bonds is exempt from state and local taxes. Moreover, you don’t need to pay federal taxes on interest earned until a bond is cashed or mature.

What is the relationship between risk and return?

key takeaways. A positive correlation exists between risk and return: the greater the risk, the higher the potential for profit or loss. Using the risk-reward tradeoff principle, low levels of uncertainty (risk) are associated with low returns and high levels of uncertainty with high returns.

What is one benefit of purchasing saving bonds Brainly?

The answer is: A. Saving bonds are purchased from the government and guaranteed to increase in value.

Which type of instrument is a certificate of deposit?

Definition: A Certificate of Deposit is a short term negotiable debt instrument that promises to pay the bearer or registered owner an amount or a number of amounts in the future. CDs can only be issued by institutions that have a license to take deposits. All issuers of CDs therefore are Banks.

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What is a certificate of deposit quizlet?

Certificate of Deposit (CD) A certifiicate issued by a bank to a person deoposititng money for a specified length of time. Higher Rate then Regular Savings. Invest. Expend money with the expectation of achieving a profit or material result by putting it into financial schemes.

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