Question

Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. she should invest in?

Answer 1

Lamar should invest in a long-term, fixed rate certificate deposit, if she believes that interest rates are going to fall in the near future and remain low for a considerable period of time.

A long-term CD is generally a CD term between two and five years. Traditionally, long-term CDs have typically offered higher rates than shorter CD terms in exchange for tying up your money for a longer term.

Some institutions provide CD terms of up to 10 years or more, although this isn't as common.

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