Floating Rate CDs Differ from Regular CDs in That

question 22

Multiple Choice

Floating rate CDs differ from regular CDs in that:

• A) they have longer maturity.
• B) they differ substantially in default risk.
• C) they are not taxed.
• D) they have coupons that are frequently reset.
• E) All of these describe differences.

---

Definitions:

Indirect Costs

are expenses not directly tied to a specific product or service production but necessary for the organization's overall operations, such as utilities or administration salaries.

Hard Costs

Direct, tangible expenses associated with the execution of a project, such as materials and labor costs.

Expenditures

The act of spending or disbursing money, particularly in relation to business or government expenses.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies to improve performance.