Lower Interest Rates on Certificates of Deposit Are Associated with

question 178

Multiple Choice

Lower interest rates on certificates of deposit are associated with

• A) higher account balances.
• B) shorter maturities.
• C) longer maturities.
• D) a and b
• E) a and c

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Definitions:

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing the amount to be returned to the holder at maturity.

German Stock Market

Refers to the stock market in Germany, primarily represented by the Frankfurt Stock Exchange, where shares of German companies are bought and sold.

Market Index

A statistical measure that shows changes in a securities market, representing a segment of the stock market or of the economy.

DAX

The DAX is a major stock market index tracking the performance of 40 major companies listed on the Frankfurt Stock Exchange in Germany.