Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken.
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Definitions:
Certificates of Deposit
Fixed-term financial instruments issued by banks that offer a fixed interest rate in exchange for keeping the deposit untouched for a predetermined period.
Orders to Pay
Instructions typically issued by a debtor authorizing their bank to pay a specified amount of money to a creditor on a certain date.
Certificate of Deposit
A Certificate of Deposit is a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.
Bank
A financial institution licensed to receive deposits, offer loans, and provide various financial services to its customers.
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