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23 November, 19:04

A person has $4000 to put into savings. Assuming all options were offered by the same institution, which account is likely to offer the highest interest rate?

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  1. 23 November, 19:19
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    Certificate of Deposit

    Explanation:

    The reason is that the certificate of deposit provides the least access to the amount deposited for a certain period of time. So the highest return will be paid by the bank on a loan which is less reskier for the bank which means that it is the loan with no changes in the amount deposited which makes it easier for the bank to earn higher interest on such payments because the investment will be for higher period of time.
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