All of the Following Are Nontransaction Deposits EXCEPT

question 109

Multiple Choice

All of the following are nontransaction deposits EXCEPT

• A)savings accounts.
• B)small-denomination time deposits.
• C)checkable deposits.
• D)certificates of deposit.

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Definitions:

Nonparticipating

Describes an insurance policy where the policyholder does not receive dividends or refunds from the insurer's surplus.

Preferred Stock

A type of stock that provides dividends before any dividends are provided to common stockholders and typically has rights to assets over common stock in the event of a company liquidation.

Participating Preferred Stock

A type of preferred stock that provides dividends and an additional right to participate in the excess profits of the company after the common stock dividends have been paid.

Convertible

Refers to a financial instrument, like a bond or share, that can be transformed into another form of financial asset, like shares of the company's stock.