Beth is researching different ways that she could save money in a bank. She notices that the certificate of deposit requires her to leave her money in the bank for at least six months and that she would have to pay a fee to withdraw the money early. Why would a bank put the time
requirement on a certificate of deposit?
Select the best answer from the choices provided.
OA. The bank wants to make sure that only people with a lot of extra money purchase certificates of deposit.
OB. The bank wants to protect customers from spending their savings by forcing them to leave the money in the bank.
OC. The fixed amount of time is a deterrent to keep too many people from asking for CDs to avoid paying high interest rates.
OD A set period of time lets a bank know how long it can safely lend the money to other customers.