Income Beginner: Introduction to Certificates of Deposit (CDs)

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1.
The length of time for which a certificate of deposit stays in the financial institution contributes to the size of its interest or dividend rate.
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True. Length of time is one factor among many that determine interest or dividend rates.
2.
A certificate of deposit of ________ is called a small-savings CD.
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Less than $100,000. Small-savings CDs exist only in amounts less than $100,000.
3.
The alternative to a fixed-rate certificate of deposit (CD) is a(n) _________.
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Variable-rate CD. This rate changes periodically along with the market.
4.
To be quoted on the NASDAQ, a negotiable certificate of deposit must have a maturity of at least _______.
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14 days. This is the minimum maturity.
5.
What is the denomination range for small-savings certificates of deposit?
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Less than $100,000. Small-savings CDs may not exceed $100,000.