Income Beginner: Introduction to Certificates of Deposit (CDs)

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1.
Compounding makes a yield _______ simple interest/dividends.
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Higher than. Compounding gives you additional earnings on top of the earnings youve already received.
2.
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.
3.
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.
4.
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.
5.
You can buy negotiable certificates of deposit in any amount.
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False. You can buy them only in amounts over $100,000.