Question

A certificate of deposit usually has: Multiple Choice a variable rate of return. no minimum deposit amount. no set time period. a penalty for early withdrawal of funds. earnings based on fluctuating market interest rates.

Answer 1

A certificate of deposit usually has:

a penalty for early withdrawal of funds.

Step-by-step explanation:

When a customer opens an account with a bank or credit union with an initial deposit, which remains the same or continues to increase at a fixed amount until the agreed maturity period, a certificate of deposit is issued to the customer. The customer does not withdraw any amount until the fixed period has elapsed. Thereafter, the customer receives a fixed interest plus the deposit.