What Differentiates a Savings Deposit from a Small-Denomination Certificate of Deposit

question 99

Multiple Choice

What differentiates a savings deposit from a small-denomination certificate of deposit (CD) ?

• A) A CD has a fixed maturity date; a savings deposit can be withdrawn at any time.
• B) A savings deposit cannot be withdrawn before its maturity date without incurring a penalty; funds in a CD are available at any time with no interest penalty.
• C) Only a savings deposit is a time deposit.
• D) All depository institutions accept savings deposits, whereas only a thrift institution can issue a CD.

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Definitions:

Cournot Duopolists

Firms in a duopoly market structure that determine their output level assuming the output of their competitor is fixed, named after Antoine Cournot.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at various prices.

Total Costs

The overall expenditure associated with producing goods or services, embracing both fixed and variable costs.

Flight Capacity

The maximum number of passengers or quantity of cargo that an aircraft can carry.