Suppose the Following Rates Are Averages for Banks in Your

question 151

Multiple Choice

Suppose the following rates are averages for banks in your area: interest checking accounts pay 1%,savings accounts pay 2%,and one-year certificates of deposit pay 3%.All accounts are federally insured by the FDIC.The difference in rates can be explained mainly by

• A) liquidity premiums.
• B) default risk premiums.
• C) maturity premiums.
• D) inflation risk premiums.

Understand the importance of clarity, readability, and effectiveness in business writing.

Recognize the purposes of business messages, including informing, persuading, and promoting goodwill.

Learn how to orient messages for the audience by understanding their perspective and anticipating their reactions.

Grasp the significance of meaning in the communication process and the role of feedback in ensuring message comprehension.

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Definitions:

Electronic Transfer

The digital movement of funds from one account to another, either within the same financial institution or between different ones.

Beneficiary

An person or entity designated to receive benefits or assets under a legal arrangement or instrument, such as a will, trust, or insurance policy.

Image Replacement Document

A document that substitutes for the original through the use of photographs or scanned copies, often used when the original is lost or inaccessible.

Substitute Check

A paper reproduction of both sides of an original check that can be processed electronically.