There Is a Penalty for Early Withdrawal of Funds from CDs

question 42

True/False

There is a penalty for early withdrawal of funds from CDs purchased from brokerage firms.

---

Definitions:

International Customer

A customer based in a country different from the one where the seller or service provider is located, often involving cross-border transactions.

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Other Comprehensive Income

A component of shareholders' equity that includes income and expenses not recognized in net income, such as unrealized gains and losses on investments.

Unrealized Gains

Increases in the value of an asset that have not been sold, hence not yet converting the gain into cash.