What is one way that certificates of deposit (CDs) differ from other saving services?(1 point)
Responses
Certificates of deposit are accompanied by a credit card that can be used at a point of sale to access the deposited money.
Certificates of deposit are accompanied by a credit card that can be used at a point of sale to access the deposited money.
Certificates of deposit usually allow an unlimited number of transactions to access the deposited money.
Certificates of deposit usually allow an unlimited number of transactions to access the deposited money.
Certificates of deposit require that the money remain deposited for a specified length of time, during which it cannot be accessed.
Certificates of deposit require that the money remain deposited for a specified length of time, during which it cannot be accessed.
Certificates of deposit typically limit the number of monthly transactions that can access the deposited money.
Certificates of deposit require that the money remain deposited for a specified length of time, during which it cannot be accessed.
Certificates of deposit require that the money remain deposited for a specified length of time, during which it cannot be accessed.
The correct answer is: Certificates of deposit require that the money remain deposited for a specified length of time, during which it cannot be accessed.
One way to determine this is by understanding what a certificate of deposit (CD) is. A CD is a savings account offered by banks and credit unions where you deposit a certain amount of money for a fixed period of time, called the term. During the term, you are not allowed to withdraw the money without incurring penalties.
To differentiate CDs from other saving services, you would need to compare their features. For example, regular savings accounts typically offer more flexibility in terms of accessing your money. Unlike CDs, where there is a specific term, savings accounts often allow unlimited access to your funds. Similarly, certificates of deposit usually have restrictions on the number of transactions you can make, whereas other saving services might not have such limitations.
In summary, the key difference is that certificates of deposit require the money to remain deposited for a specified length of time, during which it cannot be accessed easily.