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katen-ka-za [31]
3 years ago
15

A certificate of deposit that changes the rate of interest based on the prevailing market interest rate is known as a: A Market

rate CD B Step-up / Step-down CD C Negotiable CD D Renewable CD
Business
1 answer:
8090 [49]3 years ago
4 0

Answer:

B. Step-up/Step-down CD

Explanation:

A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.

Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.

Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.

A Step-up/Step-down certificate of deposit (CD) is a type of CD that changes the rate of interest for a deposit based on the prevailing market interest rate.

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How are random events taken into consideration during both hindsight bias and overconfidence?
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The hindsight bias and overconfidence, plus our eagerness to perceive patterns in random events, can cause tendencies that may lead us to overestimate our intuition. Intuition and intellect are not always accurate, therefore these factors are not trustworthy compared to scientific facts or scientific inquiry which can help us overcome our intuition’s biases and shortcomings.
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3 years ago
The aicpa's statements on auditing standards can be described as
sasho [114]
<span>The AICPA’s Statements on Auditing Standards is a guideline for auditors. This guideline shows what the minimal standards are in order for an auditor to perform their work correctly. These guidelines need to be followed in order to ensure accuracy and efficiency.</span>
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3 years ago
A new client of the member firm has just opened a margin account. After account approval, the client's initial trade is an order
Aleks04 [339]

Answer:

$2,000

Explanation:

Data provided in the question

Number of shares purchased = 100 shares

Price of common stock = $25

Given percentage = 50%

Based on the above information, there is no borrowing taken place in a margin account because there is a minimum requirement to maintain $2,000 in equity and when the purchase is made lower than $2,000 so it is important to pay the amount in full and the deposits are important when it is made more than $2,000 in the case when the trade is more than $4,000

7 0
3 years ago
Madison Inc. reported sales of $1,000,000, a debit balance in Accounts Receivable of $80,000, and a credit balance of $5,000 in
aniked [119]

Answer:

Accounts Receivable  $80,000,

Bad debt losses of 1% of credit sales= 1% * $ 80,000= $ 800

Allowance for Doubtful Accounts $5,000 credit

Bad Debts                                      $ 800 Debit

Allowance for Doubtful Accounts $4,200 credit

Two entries will be required

For recording Bad debts Expense

Bad Debts Expense $ 800 Dr

Allowance for Doubtful Accounts $ 800 credit

Adjusting Entry at year end.

Allowance for Doubtful Accounts $ 800 Debit

Account Receivables                   $ 800 Credit

4 0
3 years ago
Read 2 more answers
According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is
dimaraw [331]

Answer:

The answer is true

Explanation:

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

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3 years ago
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