Generally, Savings Account Yields Are ________ Than Yields on Certificates

question 18

Multiple Choice

Generally, savings account yields are ________ than yields on certificates of deposit that are exposed to ________ liquidity risk.

• A) lower; more
• B) higher; less
• C) higher; more
• D) lower; less

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Definitions:

Annual Inflation Rate

The percent increase or decrease in the general price level of goods and services over a period of one year.

Constant Dollar

A term used to describe a way of measuring economic statistics in which values are adjusted for inflation, allowing for comparison across different times.

Real Price

The price of goods or services adjusted for inflation, reflecting the actual purchasing power of money.

Cellulose

A complex carbohydrate that forms the primary structural component of plant cell walls and is not digestible by humans.