The Primary Difference in Certificates of Deposit (CDs) That Are

question 93

Multiple Choice

The primary difference in certificates of deposit (CDs) that are equal to or less than $100,000 and those over $100,000 (other than the amount) is:

• A) a bank does not have to include CDs equal to or less than $100,000 in its liabilities.
• B) CDs greater than $100,000 are negotiable and therefore can be bought and sold.
• C) CDs equal to or less than $100,000 are issued for only six months or less.
• D) CDs greater than $100,000 are issued for only six months or less.

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Definitions:

Warranty of Authority

A representation that a person who purports to act on behalf of another (an agent) has the necessary authority to do so.

Bankruptcy

A legal process for individuals or businesses that are unable to repay their outstanding debts, allowing for the distribution of assets to creditors, potentially leading to the discharge of remaining debts.

Agency Termination

The process of ending the relationship between an agent and their principal, which can occur for various reasons such as fulfillment of the agency purpose or mutual agreement.

Principal and Third Party

Legal terms describing the major participant in a transaction (principal) and an outsider who has a lesser role (third party).