Which of the following instruments is NOT typically associated with spending?
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A. B. C. D.D
The correct answer is D. Certificate of deposit.
A certificate of deposit (CD) is a financial instrument that is typically used for saving rather than spending. CDs are time deposits that require the account holder to deposit a certain amount of money for a fixed period of time, usually ranging from a few months to several years. In return for leaving the money in the CD for the specified term, the account holder earns a fixed interest rate.
Cash, credit cards, and debit cards, on the other hand, are all associated with spending.
Cash is the most basic form of payment and is widely accepted for purchases of goods and services. Credit cards allow users to borrow money from a lender to make purchases and are typically associated with a credit limit, interest rates, and fees. Debit cards, on the other hand, allow users to spend money that is already in their bank account and are typically linked to a checking account.
In summary, while cash, credit cards, and debit cards are all commonly used for spending, a certificate of deposit is typically used for saving rather than spending.