Question

Joe expects interest rates to decline over the next several months. To maximize his earnings, which is the best option to invest his money?
regular savings account yielding 2%

interest-bearing checking account yielding 1%

five-year certificate of deposit yielding 5%

six-month certificate of deposit yielding 5%

Answer 1

Answer:

Six months certificate of deposit

Explanation:

The interest rates of certificate of deposit are locked rates because they provide a clear and predictable return on any deposit over a specific period and the financial institution cannot later change the interest rate to reduce earnings.