What does it mean if a bank's advertisement for a certificate of deposit (CD) indicates a 4% APY?
- A. The CD matures at the rate of 4% each year.
- B. Only 4% of the CD's value can be withdrawn in any given year.
- C. You will pay 4% of the CD's value each year in service fees.
- D. The CD will earn 4% interest each year that is then added to the CD's balance.
Correct Answer & Rationale
Correct Answer: D
An advertisement indicating a 4% APY (Annual Percentage Yield) signifies that the CD will earn 4% interest annually, which is compounded and added to the CD's balance. Option A misinterprets APY; it does not refer to maturity but to interest earnings. Option B incorrectly suggests a withdrawal limit based on a percentage, which is not how CDs function. Option C mistakenly implies that there are service fees amounting to 4%, which is unrelated to APY. Understanding APY is crucial for evaluating the growth potential of a CD investment.
An advertisement indicating a 4% APY (Annual Percentage Yield) signifies that the CD will earn 4% interest annually, which is compounded and added to the CD's balance. Option A misinterprets APY; it does not refer to maturity but to interest earnings. Option B incorrectly suggests a withdrawal limit based on a percentage, which is not how CDs function. Option C mistakenly implies that there are service fees amounting to 4%, which is unrelated to APY. Understanding APY is crucial for evaluating the growth potential of a CD investment.
Other Related Questions
Based on the obituary, 'scientific management' meant
- A. doing work in a more productive manner.
- B. creating better tools for the workplace.
- C. getting rid of unskilled workers.
- D. hiring more inventive workers.
Correct Answer & Rationale
Correct Answer: A
Scientific management focuses on improving efficiency and productivity in the workplace by analyzing and optimizing work processes. Option A captures this essence, emphasizing a more productive approach to tasks. Option B, while relevant, is too narrow as scientific management encompasses more than just tool creation; it involves systematic study of workflows. Option C misinterprets the philosophy, which does not advocate for eliminating unskilled workers but rather seeks to enhance overall productivity through better management techniques. Option D suggests hiring more inventive workers, which is not a core principle of scientific management; it prioritizes process optimization over workforce creativity.
Scientific management focuses on improving efficiency and productivity in the workplace by analyzing and optimizing work processes. Option A captures this essence, emphasizing a more productive approach to tasks. Option B, while relevant, is too narrow as scientific management encompasses more than just tool creation; it involves systematic study of workflows. Option C misinterprets the philosophy, which does not advocate for eliminating unskilled workers but rather seeks to enhance overall productivity through better management techniques. Option D suggests hiring more inventive workers, which is not a core principle of scientific management; it prioritizes process optimization over workforce creativity.
In Toland, what is the opportunity cost of one unit of timber?
- A. ½ unit of fish
- B. 5 units of fish
- C. ½ unit of timber
- D. 16 units of timber
Correct Answer & Rationale
Correct Answer: A
In Toland, the opportunity cost of one unit of timber is measured in terms of the fish that could have been produced instead. Option A, ½ unit of fish, accurately reflects this trade-off, indicating that producing one additional unit of timber sacrifices half a unit of fish. Option B, 5 units of fish, overestimates the opportunity cost, suggesting an unrealistic trade-off that does not align with the production possibilities. Option C, ½ unit of timber, incorrectly implies that timber production is sacrificed for itself, which is illogical. Lastly, Option D, 16 units of timber, misrepresents the concept of opportunity cost, as it suggests sacrificing timber for more timber, which is not feasible.
In Toland, the opportunity cost of one unit of timber is measured in terms of the fish that could have been produced instead. Option A, ½ unit of fish, accurately reflects this trade-off, indicating that producing one additional unit of timber sacrifices half a unit of fish. Option B, 5 units of fish, overestimates the opportunity cost, suggesting an unrealistic trade-off that does not align with the production possibilities. Option C, ½ unit of timber, incorrectly implies that timber production is sacrificed for itself, which is illogical. Lastly, Option D, 16 units of timber, misrepresents the concept of opportunity cost, as it suggests sacrificing timber for more timber, which is not feasible.
Assume that the state of Kansas passed a law limiting the number of hours teenagers could work on farms, and the state's farmers challenged the law. The decision in which of these cases could be cited in support of Kansas's law?
- A. Commonwealth v. Hunt
- B. Muller v. Oregon
- C. Brown v. Board of Education
- D. Engel v. Vitale
Correct Answer & Rationale
Correct Answer: B
Muller v. Oregon upheld the state's ability to regulate working hours for women, emphasizing the government's role in protecting public welfare. This precedent supports Kansas's law limiting teenage work hours on farms, as it aligns with the principle of safeguarding minors' health and well-being. Commonwealth v. Hunt dealt with labor unions and the right to organize, which does not pertain to youth labor regulations. Brown v. Board of Education focused on desegregation in schools, irrelevant to labor laws. Engel v. Vitale addressed school prayer, having no connection to employment issues. Thus, only Muller v. Oregon directly supports the rationale for Kansas's law.
Muller v. Oregon upheld the state's ability to regulate working hours for women, emphasizing the government's role in protecting public welfare. This precedent supports Kansas's law limiting teenage work hours on farms, as it aligns with the principle of safeguarding minors' health and well-being. Commonwealth v. Hunt dealt with labor unions and the right to organize, which does not pertain to youth labor regulations. Brown v. Board of Education focused on desegregation in schools, irrelevant to labor laws. Engel v. Vitale addressed school prayer, having no connection to employment issues. Thus, only Muller v. Oregon directly supports the rationale for Kansas's law.
Before leaving Germany, where did most of the passengers intend to resettle?
- A. Cuba
- B. Great Britain
- C. France
- D. United States
Correct Answer & Rationale
Correct Answer: D
Most passengers intended to resettle in the United States due to its reputation as a land of opportunity and refuge for immigrants. The U.S. offered economic prospects and a chance for a fresh start, making it a primary destination for those leaving Germany. Option A, Cuba, was less appealing as it did not have the same level of immigration support or opportunities. Option B, Great Britain, while historically significant, was less favored due to its stringent immigration policies at the time. Option C, France, although attractive, did not match the U.S. in terms of the number of immigrants seeking a new life.
Most passengers intended to resettle in the United States due to its reputation as a land of opportunity and refuge for immigrants. The U.S. offered economic prospects and a chance for a fresh start, making it a primary destination for those leaving Germany. Option A, Cuba, was less appealing as it did not have the same level of immigration support or opportunities. Option B, Great Britain, while historically significant, was less favored due to its stringent immigration policies at the time. Option C, France, although attractive, did not match the U.S. in terms of the number of immigrants seeking a new life.