Which of the following investments is characterized by the following traits:

Insured by the FDIC or NCUA
Lowest interest rate of all investments
Number of withdrawals per month may be limited
(1 point)
Responses

Money market
Money market

Traditional savings account
Traditional savings account

Exchange-traded fund (ETF)
Exchange-traded fund (ETF)

Certificate of deposit (CD)
Certificate of deposit (CD)

1 answer

The investment that is characterized by the traits you mentioned (insured by the FDIC or NCUA, lowest interest rate of all investments, and limited number of withdrawals per month) is the Certificate of Deposit (CD).

CDs typically have a fixed interest rate, offer less liquidity (with penalties for early withdrawal), and are insured by the FDIC or NCUA, making them a safe investment option.