If you know you will not need access to your money for at least six months to one year, what is a recommended option for your money and the perks of utilizing this financial tool?
What will be an ideal response?
If you know you will not need access to your money for at least six months to one year, a certificate of deposit (CD) may be a viable option for you. A CD is similar to a savings account and is federally insured if you choose one from a bank or credit union. Since you cannot get access to your money for a certain period of time, the bank will pay you more interest than if you put that money in a savings account. However, you have to wait six months before you can use that money.
You might also like to view...
Provide three examples of nonverbal messages which have different meanings in different cultures
Select the term from the list provided that best matches each of the following descriptions or definitions:Your AnswerDefinition or DescriptionTerm?A. An indication of the relative importance of an item of financial information1. Absolute amounts?B. Analysis technique that compares amounts of the same item over two or more time periods2. Book value per share?C. Measures of the long-term debt paying ability of the firm3. Current ratio?D. Measure of profitability calculated by dividing net income by average total stockholder's equity4. Horizontal analysis?E. Dollar amounts of individual items on financial statements can be misleading because they make no reference to the size of the company5. Liquidity ratios?F. Measurements of a firm's ability to generate income6.
Materiality?G. Current assets divided by current liabilities7. Average days to sell inventory?H. Measures of short-term debt paying ability8. Price-earnings ratio?I. Measure to compare values of different stocks, calculated by dividing market price per share by amount of income per share9. Profitability ratios?J. Another way at looking at inventory turnover by converting the inventory turnover ratio into a number of days10. Return on equity?K. Calculated by dividing total stockholder's equity less preferred rights by the number of common shares outstanding11. Solvency ratios What will be an ideal response?
Which of the following statements is true about break-even analysis?
A. It considers the effect of price on the quantity that consumers will want. B. It reveals the price that will earn the highest profit. C. It assumes that the demand curve is perfectly horizontal at the selling price. D. It helps to compute the break-even point in units alone. E. It cannot be used for comparing several different alternatives (for example, assuming different prices).
Limited partners are personally liable for debts of the business
Indicate whether the statement is true or false