Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a (n) : A. Passbook savings account. B. Negotiable order of withdrawal (NOW) account. C. Individual deferred earnings account (IDEA). D. Certificate of deposit (CD).

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Pooh Bear

18 February, 13:12

Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a (n) : A. Passbook savings account. B. Negotiable order of withdrawal (NOW) account. C. Individual deferred earnings account (IDEA). D. Certificate of deposit (CD).

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Alonzo Reid · Answer 1

CD Certificate of deposit.

Explanation:

Is a type of savings account that has a fixed interest rate and fixed term of months or years. Is a financial product commonly sold by banks, trhift institutions, and credit union. Are similar to savings accounts in the way that they are insured "money in the bank"