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Certificate of Deposit: Definition, Advantages & Disadvantages Video

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What does CD stand for?

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1. What is the minimum amount of money you must have to purchase a CD?

2. What is the required term of a CD?

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About This Quiz & Worksheet

This printable and interactive worksheet/quiz combo can be used to refresh your understanding of Certificates of Deposit, CDs, some of their properties and requirements that must be met in order to take advantage of them.

Quiz & Worksheet Goals

In these assessments, you'll be tested on the following:

  • The amount of interest you'd receive on a 6-month CD that pays a certain APR
  • The common shorthand term for Certificate of Deposit
  • The term that refers to the ease of turning an asset into cash
  • Determining the minimum amount of money required to purchase a CD
  • The term length of CDs

Skills Practiced

This quiz and worksheet let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on the characteristics of CDs
  • Interpreting information - verify that you can read information regarding CDs and interpret it correctly
  • Information recall - access the knowledge you've gained regarding the nature of CDs

Additional Learning

To learn more about CDs and some of their characteristics, review the accompanying lesson entitled Certificates of Deposit: Definitions, Advantages & Disadvantages. The lesson focuses on the following objectives:

  • Talk about the definition of a certificate of deposit in regard to the relationship between a depositor and a bank
  • Investigate why banks developed the idea of a certificate of deposit
  • Discuss some advantages of a certificate of deposit
  • Comment on the two primary disadvantages of a certificate of deposit
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