Which of the Following Is Not True Regarding Certificates of Deposit

question 25

Multiple Choice

Which of the following is not true regarding certificates of deposit (CDs) ?

• A) The longer the term, the higher the interest rate paid.
• B) All banks offer the same rates on CDs.
• C) Early withdrawals of money are subject to a penalty.
• D) The investment of large amounts will pay higher interest than lower amounts.

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Definitions:

Spending Variance

The difference between the actual and budgeted amount of spending, indicating over or under spending.

Total Expenses

The sum of all expenses incurred by a business during a specified period, including cost of goods sold, operating expenses, and other charges.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount in a given period.

Occupancy Costs

Expenses related to occupying a space, including rent, utilities, and other facility-related costs.