A certificate of deposit that has earnings based on the stock market is called a(n):
Understand the Problem
The question asks which type of certificate of deposit (CD) earns money based on the stock market. The options provided suggest different categories of CDs, and the user is likely looking for the correct term that fits this description.
Answer
Indexed CD
The correct answer is Indexed CD.
Answer for screen readers
The correct answer is Indexed CD.
More Information
An Indexed CD is a certificate of deposit whose returns are tied to a stock market index, offering potentially higher returns with some associated risks.
Tips
A common mistake is confusing Indexed CDs with other types of CDs due to their unique market-based earning structure.
Sources
- College Personal Finance Ch4 - Quizlet - quizlet.com
- 6 Risks of Market-Linked CDs - Investopedia - investopedia.com
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