Which of the Following Is an Interest-Bearing Checking Account

question 45

Multiple Choice

Which of the following is an interest-bearing checking account?

• A)Certificate of deposit
• B)Treasury bill
• C)Negotiable order of withdrawal (NOW)account
• D)Series EE U.S. savings bond
• E)Regular checking account

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other security, as stated by the issuer.

Premium

An amount paid periodically to the insurer by the insured for covering their risk or the amount by which a bond or stock sells above its face value.

Issue Price

The price at which new or existing securities are offered for sale to the public.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its principal (face value), reflecting higher-than-market interest rates or low risk.