Which investment is a certificate of agreement between a borrower and a lender in which the borrower agrees to pay the lender a fixed rate of interest over a certain period of time?

a bond

a certificate of deposit (CD)

a mutual fund

a stock

The correct answer is a certificate of deposit (CD).

Explanation:

A certificate of deposit is an agreement between a borrower and a lender where for a fixed period of time interest will be generated in favor of the lender.

The fixed time periods for this type of agreement are 3, or 6 months, or 1 or 5 years.

The longer the time in which the deposit remains fixed, the interest received will be greater.