avings Accounts

A variable$-$rate $CD$ is characterized by an interest rate that

interest rate that

over the life of the investment, while a fixed$-$rate CD carries an

Thinking about the characteristics of fixed$-$ and variable$-$rate CDs from the perspective of a saver, complete the following statements.

An important characteristic of a fixed$-$rate $CD$ is the

expected earned interest income.

An important characteristic of a variable$-$rate $CD,$ on the of interest rate, which allows the saver to accurately anticipate his or her

Thinking about the characteristics of fixed$-$and variable$-$rate CDs from the perspective of a saver, complete the following statements.

An important characteristic of a fixed$-$rate $CD$ is the

expected earned interest income.

An important characteristic of a variable$-$rate $CD,$ on the ofrest rate, which allows the saver to accurately anticipate his or her

Thinking about the characteristics of fixed$-$and variable$-$rate CDs from the perspective of a saver, complete the following statements.

An important characteristic of a fixed$-$rate $CD$ is the

expected earned interest income.

An important characteristic of a variable$-$rate $CD,$ on the ofrest rate, which allows the saver to accurately anticipate his or her

Thinking about the characteristics of fixed$-$ and variable$-$rate CDs from the perspective of a saver, complete the following statements.

An important characteristic of a fixed$-$rate $CD$ is the $,$ of its interest rate, which allows the saver to accurately anticipate his or her

An important characteristic of a variable$-$rate $CD,$ on the other harnd interest income.

An important characteristic of a variable$-$rate $CD,$ on the other hand, is its interest rate's ability to keep pace with changes

ir

during its life.

What are the implications of the characteristics of a fixed$-$rate CD for a saver?

On the positive side, this means that savers will know in advance how much interest income they will earn, but on the negative side,

savers will earn less interest income if interest rates increase while their funds are invested.

On the positive side, this means that savers can potentially earn more interest when market interest rates increase, but on the negative

side, savers will earn less interest when market interest rates go down.

Where can you purchase CDs$?$

In addition to obtaining CDs from commercial banks, savings associations, and credit unions, you can obtain them from your stockbroker. These

investments, which tend to pay higher interest rates than those available in banks, are called

CDs$.$