Joe Barnes Opened Up an Account at Community Credit Union

question 109

Multiple Choice

Joe Barnes opened up an account at Community Credit Union. He is allowed to write checks and earns interest as long as he keeps his account balance above $2,000. In all likelihood, he opened a

• A) certificate of deposit.
• B) savings account.
• C) mutual bank account.
• D) NOW account.
• E) certified account.

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Definitions:

Par Value

The nominal or face value assigned to a share of stock or a bond by the corporation issuing it, important in legal and accounting contexts but not necessarily related to market value.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, making them more affordable to small investors.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing shareholders with a proportion of the company's profits and a claim on assets.

Earnings Per Share

A financial metric calculated as a company's net income divided by the number of outstanding shares, indicating the profitability per share.