Which of the Following Items Will Usually Give You the Highest

question 27

Multiple Choice

Which of the following items will usually give you the highest return?

• A) One-year CD
• B) Savings account
• C) NOW account
• D) Checking account

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Notes Receivable

Financial assets representing money owed to the holder of the note, usually in the form of a formal written agreement.

Common Stock Account

An equity account on a company's balance sheet representing the value of shares issued by the company and held by shareholders.

Historical Par Value

A nominal value assigned to a security or stock when it is issued, which remains unchanged over time despite market fluctuations.