Two Banks Each Have Stated CD Rates of 12

question 64

Essay

Two banks each have stated CD rates of 12%.Bank A compounds quarterly and Bank B compounds semiannually.Explain which bank offers the better CD.

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Definitions:

Short-term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Long-term Memory

A type of memory that holds information for a long duration, potentially as long as a lifetime.

High Consistency

The extent to which a person's behavior remains stable and uniform across different situations and over time.

Low Distinctiveness

A characteristic of an action where it is not unique to a specific situation but occurs in many different contexts.