A 60-Day, 12% Note for $11,000, Dated May 15, Is

question 97

Multiple Choice

A 60-day, 12% note for $11,000, dated May 15, is received from a customer. The principal amount of the note is:

• A)$220.
• B)$11,220.
• C)$10,780.
• D)$11,000.

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Definitions:

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital by underwriting and acting as the agent in the issuance of securities.

Commercial Banks

Financial institutions that provide loans, accept deposits, and offer basic financial products like savings accounts to the public.

Financial Matters

Issues or activities related to the management, investment, and control of money and assets.

Venture Capital Fund

A fund that invests in high-growth companies in exchange for equity, or ownership stakes, typically in early-stage companies.