52.
Money withdrawn from a CD before the end of the specified time period is subject to interest penalties.
ANS: T
53.
REF: p. 149
PTS: 1
DIF:
moderate
REF: p. 149
PTS: 1
DIF:
moderate
REF: p. 148-149
Laddering CDs is a technique that smoothes out the fluctuations in interest rates.
ANS: T
56.
easy
It is possible to lose money on a certificate of deposit if the early withdrawal penalty is greater than the interest earned.
ANS: T
55.
DIF:
While the majority of certificates of deposit pay a fixed rate of interest, variablerate certificates of deposit are available.
ANS: T
54.
PTS: 1
PTS: 1
DIF:
easy
REF: p. 149
The safest type of endorsement on a check is a blank endorsement.
ANS: F the safest type of endorsement is a restrictive endorsement¾blank endorsements are the least safe.
PTS: 1
57.
DIF:
easy
REF: p. 148
Checks mailed to the bank for deposit should always be endorsed with a restrictive endorsement.
