Answered

What's one disadvantage of a certificate of deposit (CD) as compared to a passbook savings account?

ADepositors must keep their money in the account for a fixed period of time.
BCDs are less risky.
CCDs earn a lower interest rate.
DCDs are less safe.

Verified Answer :

takemyword
ADepositors must keep their money in the account for a fixed period of time.
Tabbey

Answer: A. Depositors must keep their money in the account for a fixed period of time.

Explanation:

A certificate of deposit (CD) is known to be a short term security which does not allow depositors to withdraw money from the account on demand. In other word, depositors are not permitted to withdraw until the maturity date. Thus, it has a high interest rate.

A passbook savings account is a saving account in which the account holder uses a paper book for transaction in the banking hall.

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