question 4 of 6 why do financial institutions offer you higher interest rates for certificates of deposit…

question 4 of 6 why do financial institutions offer you higher interest rates for certificates of deposit (cds)? select a response. they are paying you back for fees and interest that you have prepaid. the interest you earn is only borrowed and must be repaid at the end of the term. you must keep your money in the account for a set amount of time. youll be required to invest your interest funds with the same institution.

question 4 of 6 why do financial institutions offer you higher interest rates for certificates of deposit (cds)? select a response. they are paying you back for fees and interest that you have prepaid. the interest you earn is only borrowed and must be repaid at the end of the term. you must keep your money in the account for a set amount of time. youll be required to invest your interest funds with the same institution.

Answer

Brief Explanations:

Certificates of Deposit (CDs) require customers to keep their money deposited for a fixed - term. Financial institutions offer higher interest rates as an incentive for this lack of liquidity. The other options are incorrect as CDs don't work based on prepaid fees/interest repayment, borrowed interest, or mandatory reinvestment of interest.

Answer:

You must keep your money in the account for a set amount of time.