Look at Table 2-1 again. Match the types of liabilities to these four assets that an individual might have:

a. car insurance policy

b. variable-rate certificate of deposit

c. fixed-rate certificate of deposit

d. a life insurance policy that allows the holder's beneficiary to receive \(\$ 100,000\) when the holder dies; however, if the death is accidental, the beneficiary will receive \(\$ 150,000\)

Transcribed Image Text:

Table 2-1 Nature of Liabilities of Financial Institutions Liability Type Amount of Cash Outlay Type I Known Type II Known Type III Uncertain Type IV Uncertain Timing of Cash Outlay Known Uncertain Known Uncertain