alleryStart learning →What does a CD ladder strategy do?
ASpreads deposits over terms
BPuts all money in one day
CBuys shares every week
DBorrows against deposits
Answer & Solution
Correct answer: A. Spreads deposits over terms
Splitting money across 1, 2 and 3 year CDs makes part of it mature every year.
Keep practising Money Market
Browse all Money Market questions for CA Foundation, or explore more Business Economics topics.
Related questions
Eurodollar deposits are deposits in US dollars held where?Trading companies often buy bankers' acceptances to pay whom?Federal funds are usually lent on what basis?Accrual instruments are issued at face value and mature at what amount?How does a T-bill investor earn a return?Treasury bills (T-bills) are zero-coupon securities maturing in how long?A longer CD term usually earns a higher rate, except when which condition applies?What usually applies to a withdrawal from a CD before maturity?