Vidyalelo
Management · Q446

International Finance and Treasury

Graduate and Post Graduate · Management · question 446

Q446

Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as

A.
indirect certificate
B.
direct certificate
C.
negotiable certificate
Answer
D.
deposit certificate

Answer: Option C

Solution

Answer: Option C
Solution:
Deposit issued by bank, usually negotiable and have specific maturity date and interest rate is classified as negotiable certificate. A negotiable certificate of deposit, or CD, is a marketable receipt for funds deposited in a bank for a specified period at a specified rate of interest.