An Insured Account Requiring a Minimum Balance That Draws Interest

question 11

Multiple Choice

An insured account requiring a minimum balance that draws interest at a higher percentage than a regular savings account is called a __________ account.

• A) money market savings
• B) individual retirement
• C) checking
• D) business savings

---

Definitions:

Net Purchases

The total amount of purchases after subtracting any returns, allowances, and discounts over a specific period.

Purchase Returns

Occurs when a buyer returns merchandise that it had purchased from a supplier, often due to issues like defects or dissatisfaction.

Purchase Discounts

Reductions in the purchase price of goods, often granted by suppliers for early payment.

Profit Margin

The percentage difference between a product's selling price and the cost to produce it, indicating the financial health and profitability of a business.