Suppose You Deposit Money in a Certificate of Deposit (CD)at

question 42

Multiple Choice

Suppose you deposit money in a certificate of deposit (CD) at a bank.Which of the following statements is TRUE?

• A)The bank is borrowing money from you without a promise to repay that money with interest.
• B)The bank is lending money to you with a promise to repay that money with interest.
• C)The bank is technically renting money from you with a promise to repay that money with interest.
• D)The bank is lending money to you,but not borrowing money from you.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services that is supplied and demanded at the point where the supply and demand curves intersect, indicating a market balance.

Champagne

A sparkling wine produced from grapes grown in the Champagne region of France under certain regulations.

Alcohol Law

Legislation governing the sale, consumption, and distribution of alcoholic beverages within a jurisdiction.