Question

In moving some of your monetary assets from a FDIC insured savings account to a certificate of deposit, you are sacrificing some ____________ in order to gain some __________. Which of the following best fills in the blanks?a. security; liquidity, respectivelyb. return; liquidity, respectivelyc. return; security, respectivelye. liquidity; return, respectively

Answer 1

e. liquidity; return, respectively

Step-by-step explanation:

As the assets are transferred from savings account to a certificate of deposit account, some advantage of savings account like the liquidity is sacrificed as savings is one of the most liquid forms of asset. In a certificate of deposit account, it does not guarantee the same amount of liquidity but provides a better return.