Which of the Following Is True Regarding Guaranteed Investment Certificates

question 55

Multiple Choice

Which of the following is true regarding guaranteed investment certificates (GICs) ?

• A)The longer the term,the lower the interest rate paid,all else equal.
• B)All banks offer the same rates on GICs.
• C)Early withdrawals of money are not subject to a penalty.
• D)Much higher interest rates (than competitors)would likely reflect higher risk.

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Definitions:

Nowicki-Strickland

A psychological assessment tool used to measure an individual's perceived locus of control.

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.

Locus of Control

A mental principle suggesting the level of conviction individuals possess regarding their ability to influence the circumstances and events impacting their existence.

Extraverted

Characterized by an outward-focused orientation, enjoying social interactions, and drawing energy from being around other people.