Joe expects interest rates to decline over the next several months. To maximize his earnings, which is the best option to invest

Question

3 years ago

6

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%

History

1 answer:

kiruha [24] · Answer 1 · 2022-06-12T18:41:13+03:00

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.