Which of the Following Is Not True About Certificates of Deposit

question 30

Multiple Choice

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

• A) They pay higher interest than T-bills.
• B) They are long-term investments of two years or more.
• C) Funds are locked in for specific periods of time.
• D) A penalty is imposed for early withdrawal.

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Definitions:

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no formal contract exists between the parties.

Remedies

The means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Sale of Goods

A transactional agreement between a seller and a buyer for the exchange of personal property for a certain price.

Complete Construction

The process of finishing a building or construction project in all its parts, fully executed according to the plan and specifications.