Which of the Following Is Not a Category of Investments

question 67

Multiple Choice

Which of the following is not a category of investments?

• A)Held-to-maturity securities
• B)Trading securities
• C)Collateral securities
• D)Available-for-sale securities

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Definitions:

Compounded Quarterly

Interest calculation method where the interest earned is calculated and added to the principal four times a year.

Monthly Compounded

Interest calculation method where interest is added to the principal sum of a loan or deposit each month, leading to interest on interest.

Monthly Compounding

Calculation of interest on the principal sum plus any previously earned interest on a monthly basis.

Semiannual Compounding

The process of calculating interest on both the initial principal and the accumulated interest over two periods within a year.