Question
In which situation would a certificate of deposit (CD) be the best banking choice?
A: Samuel is setting money aside but still needs emergency access to it.
B: Hafsa wants a guaranteed return, and won’t need the money for several years.
C: Darren is looking for an investment that has a very high interest rate.
D: Raj is looking for an investment with a fast return so he can reinvest.
A: Samuel is setting money aside but still needs emergency access to it.
B: Hafsa wants a guaranteed return, and won’t need the money for several years.
C: Darren is looking for an investment that has a very high interest rate.
D: Raj is looking for an investment with a fast return so he can reinvest.
Answers
GPT-4o mini
The best banking choice for a certificate of deposit (CD) would be:
**B: Hafsa wants a guaranteed return, and won’t need the money for several years.**
A CD typically offers a fixed interest rate for a specified term, making it suitable for those who can commit their funds for a period and are looking for a low-risk investment with guaranteed returns.
**B: Hafsa wants a guaranteed return, and won’t need the money for several years.**
A CD typically offers a fixed interest rate for a specified term, making it suitable for those who can commit their funds for a period and are looking for a low-risk investment with guaranteed returns.