Which of the Following Statements Is NOT True of Term

question 27

Multiple Choice

Which of the following statements is NOT true of term deposits?

• A) They are less liquid than a current deposit.
• B) They usually offer a higher return than a current deposit.
• C) They are attractive to investors who expect interest rates to fall.
• D) They are generally negotiable instruments.

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Definitions:

Accounting Values

The monetary amounts associated with assets, liabilities, equity, income, and expenses recorded in a company's financial statements.

Financial Values

Refers to the monetary, material, or assessed worth of an asset, investment, or company.

Payback

The period of time needed for an investment to generate cash flow sufficient to recover the initial expense incurred.

Simplicity

The quality of being easily understood or performed; favoring clear, uncluttered methods and procedures.