Which of the Following Is Not True About Certificates of Deposit

question 87

Multiple Choice

Which of the following is not true about certificates of deposit (CDs) ?

• A) They pay higher interest than a saving account.
• B) They are only offered in denominations of $100,000 or more.
• C) They are not as liquid as a savings account.
• D) Funds are locked in for specific periods of time.

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that determines the cost assigned to each unit, taking into account units that are partially completed at the end of a period.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.

Weighted-Average Method

An inventory costing method in which the cost of goods available for sale is divided by the total units available for sale, resulting in a weighted average cost per unit.

Process Costing System

An accounting system used to accumulate costs in industries where production is continuous and units are indistinguishable from one another.