A Time Deposit Is Also Known as

question 68

Multiple Choice

A time deposit is also known as

• A) A checking account.
• B) A trust.
• C) A loan.
• D) A savings account.
• E) All of these are time deposits.

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Definitions:

Year-end Balance

The total amount of money in an account or on the financial statements at the conclusion of the fiscal year.

Compounded Monthly

Interest on an investment or loan calculated each month on both the initial principal and the accumulated interest from previous months.

Effective Annual Interest Rate

The effective annual interest rate considers the effects of compounding, providing a true reflection of the annual cost of borrowing over a year.

Compounded Monthly

Compounded monthly refers to the way interest is calculated on an investment or loan, with the interest added to the principal each month so that subsequent interest is earned on an increasingly larger base.