Deposits Made by the Public into a Savings Account Are

question 82

Multiple Choice

Deposits made by the public into a savings account are referred to as ________.

• A) overdrafts
• B) demand deposits
• C) current deposits
• D) stockholders' equity

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Definitions:

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the current market price of a share by its earnings per share (EPS).

Dividend Payout Ratio

The ratio of the total dividends declared by a company to its net income, showing what portion of earnings is paid out as dividends.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Current Ratio

An indicator of how well a company can satisfy its obligations due within a short period, calculated by taking current assets and dividing them by current liabilities.