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 Money withdrawn from a CD before the end of the specified time period is subject to interest penalties.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