What differentiates a savings deposit from a small-denomination certificate of deposit (CD)?
A. A savings deposit cannot be withdrawn before its maturity date without incurring a penalty; funds in a CD are available at any time with no interest penalty.
B. A CD has a fixed maturity date; a savings deposit can be withdrawn at any time.
C. All depository institutions accept savings deposits, whereas only a thrift institution can issue a CD.
D. Only a savings deposit is a time deposit.
Answer: B
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A market demand curve reflects the
A) marginal private benefits of consuming a product. B) external benefits of consuming a product. C) marginal social benefits of consuming a product. D) sum of private and social benefits of consuming a product.
Seasonal credit provided by the Fed is not as common as it used to be because:
A. there are fewer banks in seasonal areas. B. seasonal credit has been replaced by secondary credit. C. other sources for long-term loans have developed for banks in seasonal areas. D. seasonal credit is being replaced by primary credit.