This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose you deposit money in a certificate of deposit (CD) at a bank. Which of the following ... (Read 81 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Jul 10, 2018
Suppose you deposit money in a certificate of deposit (CD) at a bank. Which of the following statements is TRUE?
 
  A) The bank is borrowing money from you without a promise to repay that money with interest.
  B) The bank is lending money to you with a promise to repay that money with interest.
  C) The bank is technically renting money from you with a promise to repay that money with interest.
  D) The bank is lending money to you, but not borrowing money from you.

Question 2

The phrase price to rent money is sometimes used to refer to ________.
 
  A) historical prices
  B) compound rates
  C) discount rates
  D) interest rates


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

helenmarkerine

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: A) When you buy a CD, the bank DOES promise to repay both the principal and interest due.
B) When you buy a CD, the bank is NOT lending money to you but borrowing money from you.
D) When you buy a CD, the bank is renting or borrowing money from you; it is NOT lending money to you.

Answer to Question 2

Answer: D


B

  • Hero Member
  • *****
  • Posts: 570
Reply #2 on: Jul 10, 2018
TY


helenmarkerine

  • Sr. Member
  • ****
  • Posts: 324
Reply #3 on: Jul 10, 2018
Happy to Help


« previous next »
 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Everyone has one nostril that is larger than the other.

A diploma or certificate is proof of education completed. A diploma or certificate is proof of education completed.
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ... Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ... Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ...
Biological control agent: a commercially raised parasitoid wasp about to deposit a fertilized egg in Biological control agent: a commercially raised parasitoid wasp about to deposit a fertilized egg in
Video: Introduction to Sleep Apnea

For a complete list of videos, visit our video library