If You Take an 18-Month USD Deposit, When Is Interest

question 163

Multiple Choice

If you take an 18-month USD deposit, when is interest payable?

• A) Quarterly
• B) At maturity
• C) Semi-annually
• D) After one year and at maturity

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before any dividends can be distributed to common stockholders.

Guaranteed Dividends

Dividends that are promised by a corporation to preferred shareholders, payable before any dividends are given to common shareholders.

Par Value

The nominal or face value assigned to a share of stock or a bond, used in legal documents and usually unrelated to market value.

Corporate Charter

A corporate charter is a legal document that establishes a corporation, setting forth its structure, powers, and objectives as granted by the state.