When we purchase certificates of deposit or bonds, we forgo in exchange for interest.

A) Liquidity

B) Purchasing Power

C) Tax Payments

A

Explanation:

Certificate of deposit is a form of deposit where money is deposited in a financial institution for a defined period of time in order to earn a return.

It has advantages in paying higher returns than some other form of savings and is even more secured , however liquidity is forgone for the interest.

This means that you can not withdraw your money before the defined time unless you  are willing to forgo some accumulated interest and also pay early withdrawal penalty.

As cash is tied up , other investment opportunity that could bring a higher investment might be missed.

answer; balance sheets;