When Purchasing a Certificate of Deposit (CD)

question 29

Multiple Choice

When purchasing a certificate of deposit (CD) ,

• A) you are always better off to buy the longer-term CDs.
• B) you will earn more interest percentage-wise on the lower dollar CDs.
• C) the amount you invest is at risk, so choose carefully.
• D) it is wise to shop around as rates vary among financial institutions.

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Definitions:

Batch Process

A method of manufacturing where production occurs in groups or batches, with each batch moving through the production process together.

Operation Performed

Refers to an action executed within a system, application, or process, typically resulting in a change or outcome.

Distributive Control

Distributive control is a system architecture where control functions are distributed among multiple interconnected elements, rather than being centrally located, to enhance reliability and flexibility.

On/Off Control

A basic form of control where a device or system is either fully activated (on) or completely deactivated (off), without intermediate states.