When Liquidating a Traditional Certificate of Deposit (CD) Prior to Maturity

question 118

Multiple Choice

When liquidating a traditional certificate of deposit (CD) prior to maturity, the owner:

• A)must repay the interest due on the CD.
• B)must return it to the issuing institution.
• C)must refund the difference in the face value and market value of the CD to the issuing institution.
• D)must claim the interest earned by the bank by investing the CD amount.
• E)must deposit the amount equivalent to the CD amount in a savings account with the same bank.

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Definitions:

Resources Necessary

Essential materials, finances, human capital, and other assets required to accomplish tasks, projects, or goals within an organization.

Goal Commitment

The determination or resolve an individual has to achieve a set goal, despite obstacles or difficulties.

Expected Rewards

Anticipated benefits or returns that motivate individuals towards performing certain actions or behaviors.

Satisfied Committed

A state where individuals feel content with their achievements or status and are dedicated to their roles or responsibilities.