Norma is considering buying a certificate of deposit with the $500 she has in a regular savings account. Explain to her what factors she could consider when choosing a certificate of deposit.

Respuesta :

Answer:

The factors she could consider when choosing a certificate of deposit is explained below in detail.

Explanation:

A higher principal should/may obtain a greater interest rate.

A longer-term normally receives a greater interest rate, except in the matter of a modified yield curve.

Smaller businesses manage to offer greater interest rates than higher ones.

Individual CD accounts commonly obtain greater interest rates than business CD accounts.