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Question 4 of 25

Compared to CDs, basic savings accounts are more liquid and have ______ interest rates.

A. more; lower
B. less; lower
C. more; higher
D. less; higher



Answer :

GinnyAnswer

Final answer:

Basic savings accounts offer lower interest rates compared to CDs due to differing liquidity terms.


Explanation:

Basic savings accounts typically offer lower interest rates compared to Certificates of Deposit (CDs) because investors are compensated for leaving their money untouched for a period of time. CDs provide a slightly higher interest rate due to the commitment of not accessing the funds until maturity.


Learn more about Interest Rates on Savings Accounts vs. CDs here:

https://brainly.com/question/29638251


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