Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively att

Question

3 years ago

9

Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively att

ractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a(n):A. Passbook savings account.B. Negotiable order of withdrawal (NOW) account.C. Individual deferred earnings account (IDEA).D. Certificate of deposit (CD).

Business

1 answer:

topjm [15] · Answer 1 · 2022-07-09T21:32:04+03:00

Answer:

CD Certificate of deposit.

Explanation:

Is a type of savings account that has a fixed interest rate and fixed term of months or years. Is a financial product commonly sold by banks, trhift institutions, and credit union. Are similar to savings accounts in the way that they are insured "money in the bank"