Which of the Following Is NOT a Type of Real

question 13

Multiple Choice

Which of the following is NOT a type of real option?

• A) Compound
• B) Switching
• C) Abandonment
• D) Compilation

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Definitions:

Term Deposit

A banking term for a fixed-term investment held at a financial institution where money is locked in for a certain period of time, earning a specified interest rate.

Simple Interest

Interest calculated only on the principal amount, or original sum borrowed or invested, without compounding.

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including both principal and interest.

Term Deposit

A bank deposit that has a fixed term and typically earns higher interest than regular savings accounts.