A $400 Savings Account That Earns $15 Interest in a Year

question 59

Multiple Choice

A $400 savings account that earns $15 interest in a year has a yield of ____________ percent.

• A)6
• B)15
• C)4.75
• D)3.75
• E)6.5

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Definitions:

Few Suppliers

Refers to a market situation where only a limited number of vendors provide a certain product or service, potentially leading to less competition and higher prices.

JIT Systems

Inventory management systems that seek to minimize inventory levels by scheduling material arrivals only when they are needed in the manufacturing process.

Environmental Risk

The potential for environmental damage or adverse health effects resulting from exposure to environmental hazards or pollutants.

Control Risk

The risk that errors or irregularities in financial statements will not be prevented, or detected and corrected, by an organization's internal controls.