A Jump Rate CD Is Also Known as A(n)

question 13

Multiple Choice

A jump rate CD is also known as a(n) :

• A) trust CD.
• B) zero coupon CD.
• C) bump-up CD.
• D) federal funds CD.
• E) fixed-rate CD.

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Definitions:

Trade Credit

Debt arising from credit sales and recorded as an account receivable by the seller and as an account payable by the buyer.

Discounts

A reduction from the usual cost of something, often applied to prompt payment or to certain categories of customers.

Increase

A rise in value, quantity, or some other measure.

Trade Discount

A reduction from the list price given by a seller to a buyer, often based on the volume of the transaction or to incentivize early payment.