A Certificate of Deposit Differs from a Promissory Note in That

question 8

Multiple Choice

A certificate of deposit differs from a promissory note in that:

• A) the maker is always a bank.
• B) there are three parties to the transaction.
• C) the payee of a CD must be paid on demand.
• D) the maker can be a bank  or an individual.

---

Definitions:

Selling Price

The amount of money for which a product or service is sold to the customer.

Net Operating Income

The total income from operations of a company before taxes and interest, calculated by subtracting operating expenses from gross profit.

Sales Volume

Refers to the quantity of products or services sold by a business within a specific period.

Break-even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.