A certificate of deposit (CD) differs from a traditional savings account in what way?(1 point)

Responses

CDs are a riskier investment
CDs are a riskier investment

CDs include the purchase of stocks
CDs include the purchase of stocks

CDs have a low interest rate
CDs have a low interest rate

CDs must remain untouched for a fixed period of time
CDs must remain untouched for a fixed period of time

1 answer

The correct response is: CDs must remain untouched for a fixed period of time.

Certificates of deposit (CDs) typically require you to lock your funds for a specified period in exchange for a higher interest rate compared to traditional savings accounts. In contrast, a traditional savings account allows for more flexible access to your funds without a fixed term requirement.