Stephanie wants to take $10,000 out of her bank savings account and put it in a certificate of deposit (CD) that charges a penalty if she withdraws the money before two years are over. What is the economic trade-off in this investment?

Select the best answer from the choices provided.
higher returns for more risk
higher returns for higher liquidity
higher returns for higher volatility
higher returns for lower liquidit

Question

Stephanie wants to take $10,000 out of her bank savings account and put it in a certificate of deposit (CD) that charges a penalty if she withdraws the money before two years are over. What is the economic trade-off in this investment? 


Select the best answer from the choices provided.
higher returns for more risk
higher returns for higher liquidity
higher returns for higher volatility
higher returns for lower liquidit

anonymous · Answer

Higher returns for lower liquidity

anonymous · Answer

Because it's harder for her to get her money out.

anonymous · Answer

my friend you are correct . im testing people if they know the answer