Which of the Following Is Not a Characteristic of Jumbo

question 50

Multiple Choice

Which of the following is not a characteristic of jumbo CDs?

• A)They have a minimum maturity of 7 days.
• B)Interest rates are quoted on a 365-day year.
• C)They are generally issued at face value.
• D)They are only insured up to $100,000 per individual per institution.
• E)All of the above are characteristics of jumbo CDs

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales within a certain range, such as rent, salaries, and insurance.

Variable Cost

A cost that varies with the level of output or activity, such as materials and labor costs.

Operating Leverage

A financial ratio that measures the degree to which a firm or project can increase operating income by increasing revenue.

Operating Income

The income earned from a company's day-to-day operations, calculated before taking into account interest and taxes.