Funds in a ____ Must Remain on Deposit for the Stated

question 134

Multiple Choice

Funds in a ____ must remain on deposit for the stated time period in order to avoid an interest penalty.

• A)certificate of deposit
• B)U.S. Treasury bill
• C)checking account
• D)mutual fund
• E)regular savings

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Definitions:

Required Rate of Return on Equity

The minimum rate of return that investors expect from their stock investments, considering the risk involved.

Plowback Ratios

A measure of how much of a company's net income is reinvested into the company rather than distributed to shareholders as dividends.

ROE

Return on equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using assets to generate profits.

Liquidation Value

The estimated total value of a company's physical assets if it were to go out of business and the assets sold off.