Problemas
Generally, savings account yields are __ than yields on certificates of deposit that are exposed to __ liquidity risk. a lower, more b higher, less C higher, more lower; less
Roztwór
Ana
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Respuesta
The correct answer is b) higher, less.Savings accounts typically offer higher yields compared to certificates of deposit (CDs) because they are more liquid. Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. Savings accounts are highly liquid, meaning you can withdraw your money at any time without any penalties or loss of value. On the other hand, CDs are less liquid because they have a fixed term and early withdrawal penalties. demand higher returns for the reduced liquidity associated with CDs. Therefore, savings account yields are generally higher than yields on CDs exposed to less liquidity risk.