Which of the Following Liabilities Have a High Degree of Withdrawal

question 12

Multiple Choice

Which of the following liabilities have a high degree of withdrawal risk?

• A)Passbook savings.
• B)NOW Accounts.
• C)Demand deposits.
• D)Time deposits.
• E)Wholesale CDs.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Tax Considerations

The factors concerning the tax implications of any financial decision, investment strategy, or transaction, which can affect the overall benefit or cost to an individual or business.

Risk Tolerance

An individual's or financial entity's capacity to endure loss or volatility in investment value while attempting to achieve investing goals.

Weighted Average Cost

A calculation that takes into account the various costs of goods based on their relative weights, to arrive at an average cost per unit.