A certificate of deposit usually has:Multiple Choiceno set time period.a penalty for early withdrawal of funds.earnings based on fluctuating market interest rates.a variable rate of return.no minimum deposit amount.

A Certificate of deposit (CD) is a type of savings account that typically has a set time period,…

Answered: A certificate of deposit usually has:…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

funds in a must remain on deposit for a stated time period in order to avoid an interest penalty?
Overdraft checks are insufficiently funded. True False There is a guarantee of higher interest income when certificates of time deposit are rolled over. True False
Identify the advantages of having certificates of deposit. Select all that apply. O easy to manage accounts O early withdrawal penalties O funds are insured through FDIC O Money cannot be added to the account O highest interest rate of conservative accounts
Collateral security is used by the lender when * interest is not paid on time the loan is not repaid and prime security is insufficient to cover the dues the loan term is over the interest rates in the market change
Which of the following increases the reported receivables in the financial statements? offsetting a credit balance in an account receivable a credit balance in an account payable adjustment to eliminate a debit balance in accounts payable a credit balance in an allowance account Short-term receivables including non-trade receivables that are currently collectible may not be discounted to their present values because their face values are normally immaterial. they are so near their maturity dates that their values do not change. present value computation is very complex. the effect of discounting may be immaterial Which of the following statements is incorrect concerning the expected credit loss model of PFRS 9? The expected credit loss model applies to all financial instruments within the scope of PFRS 9, debt and equity alike. A credit loss may be recognized on the initial recognition of a debt instrument. The measurement of loss allowance is the same in…
The risk of not having sufficient cash and borrowing capacity to meet deposit withdrawals, loan demand and other cash needs is called: a. Interest rate risk. b. Price risk. O c. Liquidity risk. O d. Country risk.
The definitions of default events are fairly standard, but what really constitutes a default? a. The second missed payment O b. Default only happens when you cannot pay the interest on the outstanding debt c. The first missed payment O d. Depends on what kind of grace period is granted and the agreement with the borrower
The difference between accounts receivable and allowance for doubtful accounts is O a. the bad debt expense O b. the net realizable value of accounts receivable O c. the accounts receivable turnover O d. none of these choices
A time deposit with a bank or a fixed deposit with an original maturity of 4 months would not qualify as cash equivalent. Select one: True False
Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of cash to be received in the future, failure to follow this practice usually does not make the balance sheet misleading because a. The amount of the discount is not material. B. Most receivables can be sold to a bank or factor. C. Most short-term receivables are noninterest bearing. D. The allowance for uncollectible accounts includes a discount element.
Which statement is false? a. The amount of Accounts Receivable pledged should be excluded from Accounts Receivable in the balance sheet. b. When Accounts Receivable are assigned on a notification basis, the company reduces liability and Accounts Receivable account for the net amount of collections of Accounts Rceivable. c. In factoring Accounts Receivable as a continuing agreement, the buyer of Accounts Receivable protects himself from risks arising from discounts, returns and allowances thru by withholding a portion of the amount of accounts receivable. e. none of the above Please explain.
The Allowance for Doubtful Accounts account is a contra-account that offsets: Multiple Choice Bad Debt Expense. Cash. Net Income. Accounts Receivable.

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A certificate of deposit usually has: Multiple Choice O O a penalty for early withdrawal of funds. no set time period. O earnings based on fluctuating market interest rates. O O a variable rate of return. no minimum deposit amount.