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  • Question
  • What is true about certificates of deposit?


  • Options
  • A. the money has to remain in the account for a specified period of time
  • B. they are the most liquid account available
  • C. they offer lower interest rates than savings accounts
  • D. All the above

  • Correct Answer
  • the money has to remain in the account for a specified period of time 

    Explanation

    A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.

    CD's are generally issued by commercial banks

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    Accounting and Finance problems


    Search Results


    • 1. Reconciling the bank statement monthly is an example of

    • Options
    • A. establishment of responsibility
    • B. independent internal verification
    • C. documentation procedures
    • D. segregation of duties
    • Discuss
    • 2. How can investors receive compounding returns?

    • Options
    • A. By investing their earnings back into their original investment
    • B. By diversifying their investment portfolio
    • C. By selecting a savings account that has a higher interest rate
    • D. By transferring their earnings back into high-risk investment
    • Discuss
    • 3. The accounting software Tally was developed by

    • Options
    • A. Wipro
    • B. TCS
    • C. HCL
    • D. Infosys
    • Discuss
    • 4. A check returned by the bank marked nsf means

    • Options
    • A. Cheque has been forged
    • B. Cheque can't be cashed being illegal
    • C. There are not sufficient funds in your accoun
    • D. Bank can't verify your identity
    • Discuss
    • 5. Commercial banks are funded through which of the following?

    • Options
    • A. Stock holders
    • B. Government funding
    • C. Services
    • D. Customer deposits
    • Discuss
    • 6. The reserves of a commercial bank consist of

    • Options
    • A. the bank's net worth
    • B. the amount of money market funds it holds
    • C. government securities that the bank holds
    • D. deposits at the Federal Reserve Bank and vault cash
    • Discuss
    • 7. In a fractional reserve banking system

    • Options
    • A. bank accepts deposits
    • B. bank accepts some loans
    • C. bank has some cash reserves
    • D. All the above
    • Discuss
    • 8. Compounding interest means interest accrues

    • Options
    • A. at variable rates throughout the term
    • B. more quickly than simple interest
    • C. more slowly than simple interest
    • D. at the same rate as simple interest
    • Discuss
    • 9. Which investment type typically carries the least risk?

    • Options
    • A. Mutual funds
    • B. Treasury bonds
    • C. Savings account
    • D. Individual stocks
    • Discuss
    • 10. The credit balance in the bank account is

    • Options
    • A. amount liable to pay by bank
    • B. amount liable to pay by customer
    • C. Both A + B
    • D. None of the above
    • Discuss


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