Question

Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
A. True
B. False

Answer 1

Answer:

That statement is true

Explanation:

- Issued by money-centered financial firms,

-  short- or medium-term insured debt instruments pay higher interest than a regular savings account.

Those are the characteristics of Certificate of deposit

The certificate of deposit that issued by a bank is protected by  Federal Deposit Insurance Corporation. This means that you guaranteed the return of your investment.

As the risk of investment becomes lower, the amount of profit tend to also become lower along with it.  This happens to all forms of investment.

On average, the amount of profit you can get from an investment through certificate of Deposit is only around 2% per year,