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Choosing a longer investment period when buying a certificate of deposit often insures what?

1 Answer

4 votes

Final answer:

Choosing a longer investment period when buying a certificate of deposit often insures higher interest rates and a more substantial return on your investment.

Step-by-step explanation:

Choosing a longer investment period when buying a certificate of deposit often insures higher interest rates. A certificate of deposit (CD) is a type of financial asset where you deposit a certain amount of money for a specified period of time. In exchange, the bank pays you a higher interest rate than a regular savings account. By committing to a longer investment period, you are locking in a higher interest rate that will accumulate over time, providing you with a more substantial return on your investment.

answered
User Praveen Govind
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