Which of the Following Is True of a Certificate of Deposit

question 54

Multiple Choice

Which of the following is true of a certificate of deposit?

• A)It is sold by large corporations to raise short-term funds.
• B)​A fall in its demand will lead to an increase in the price of the security and a fall in its yield to maturity.
• C)Higher the term to maturity of a certificate of deposit, higher the yield to maturity.
• D)​It is not a liquid security and cannot be transferred from one party to another.

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Definitions:

Pavlov

Known for his work in classical conditioning, showcasing how reflexes can be conditioned to respond to neutral stimuli.

Classical Conditioning

A training method where two cues are consistently associated with each other, leading to a situation where a reaction initially triggered by the second cue is ultimately triggered by the first cue alone.

Robert Rescorla

A psychologist known for his influential work in the conditioning area, particularly regarding the contingency model of classical conditioning.

B. F. Skinner

An American psychologist known for his work in behaviorism and the development of the theory of operant conditioning, which emphasizes the role of reinforcement and punishment in shaping behavior.