Because Certificates of Deposit Require That the Deposited Funds Remain

question 124

Multiple Choice

Because certificates of deposit require that the deposited funds remain on deposit for a specified period of time they are subject to

• A)interest rate risk.
• B)fixed withdrawal risk.
• C)market risk.
• D)systemic risk.

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Definitions:

Index of Leading Indicators

A composite index designed to predict the future movements of the economy based on various economic indicators.

New Building Permits

Legal authorizations required from governmental entities before the construction of new buildings can commence.

Unemployment Rate

The ratio of individuals without jobs in the labor force who are in search of employment.

Structurally Unemployed

Individuals who are unemployed due to shifts in the economy that create a mismatch between their skills and the demands of the current job market.