CD Laddering Is a Technique That Smoothes Out the Fluctuations

question 139

True/False

CD laddering is a technique that smoothes out the fluctuations in interest rates and lowers inflation rate risk.

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Definitions:

Apparent Authority

A situation where a person appears to have been given the power by a company or another person to act on their behalf, even if no actual authority was granted.

Disclosed Principal

A situation in a business arrangement where the identity of the principal is known to all parties involved in the transaction.

Ratifies

To officially approve or confirm an action, agreement, or decision, making it valid and legally binding.

Contractually Bound

Contractually Bound indicates that parties have agreed to specific terms and conditions outlined in a contract, obligating them to fulfill their respective parts of the agreement.