When You Invest in a CD That Has a Maturity

question 22

Multiple Choice

When you invest in a CD that has a maturity of one year,you are guaranteed the interest rate offered on that CD.Your return would be termed

• A)risk premium.
• B)money in the bank.
• C)risk-free return.
• D)liquid assets.

---

Definitions:

Fish

Aquatic animals that are typically covered with scales and have fins for movement; also refers to the act of catching these animals as a form of consumption or sport.

Utility Function

is a mathematical representation that captures an individual's preference system, showing the level of satisfaction or utility derived from consuming various bundles of goods.

Competitive Market

A market structure characterized by a large number of buyers and sellers, similar products offered by the competing businesses, and a negligible amount of market control held by each seller.

Coconuts

The large, oval, brown seed of a tropical palm, containing a clear liquid and a white, edible flesh.