Match the Following Terms with Their Definitions

question 13

Multiple Choice

Match the following terms with their definitions.
-Periods

• A)Year times number of times compounded in one year
• B)Twice a year
• C)Stated rate
• D)True rate of interest
• E)Amount calculated on adjusted principal
• F)Periodically interest is calculated and added to principal
• G)Rate divided by number of times compounded per year
• H)Know future amount looking for present
• I)Four times per year
• J)Twelve times per year

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Definitions:

Bearer Paper

A type of negotiable instrument that is not registered to a specific owner, allowing the holder or bearer of the document to claim the value of the instrument.

Order Paper

A document in legislative bodies listing the order in which bills will be debated or considered.

Promissory Note

A written, legally binding document in which one party promises to pay another a defined sum of money at a specified time or upon demand.

Certificate of Deposit

A time deposit financial product offered by banks to individuals that pays interest and returns the principal after a fixed period.