Answer:
That statement is true
Explanation:
- Issued by money-centered financial firms,
- short- or medium-term insured debt instruments pay higher interest than a regular savings account.
Those are the characteristics of Certificate of deposit
The certificate of deposit that issued by a bank is protected by Federal Deposit Insurance Corporation. This means that you guaranteed the return of your investment.
As the risk of investment becomes lower, the amount of profit tend to also become lower along with it. This happens to all forms of investment.
On average, the amount of profit you can get from an investment through certificate of Deposit is only around 2% per year,
