Time Deposits Consist Of

question 18

Multiple Choice

Time deposits consist of:

• A)checking accounts.
• B)loans and charge accounts.
• C)savings accounts.
• D)government securities.
• E)profits earned by a financial institution.

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Definitions:

Present Values

The present value of a future amount of money or series of payments, calculated using a designated interest rate.

Cash Inflows

Money or funds coming into a business or project, often as revenue, financing, or investment.

Cash Outflows

Money going out of a business, including expenses, investments, and distributions to shareholders.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.