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

Question

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

Answer 1

The correct response is:

CDs must remain untouched for a fixed period of time.

Certificates of deposit typically require that the depositor leave the money in the account for a predetermined period, whereas traditional savings accounts allow for more flexibility and accessible withdrawals.