Your Chartered Bank Is Offering a One-Year GIC with an Interest

Multiple Choice

Your chartered bank is offering a one-year GIC with an interest rate of two percent,and a one-year cashable GIC at one and a half percent.Term deposits are paying one percent.You have $10 000 to invest of which you feel $5000 is ample for emergency fund purposes.How should you invest your funds given the scenario above?

A) $5 000 in the one-year GIC and $5 000 in a term deposit
B) $5 000 in the one-year GIC and $5 000 in the one-year cashable GIC
C) $10,000 in the one-year GIC
D) $10,000 in the one-year cashable GIC