Q408
Interest rate of certificate of deposits is quoted using a time span of
A.
250 days a year
B.
150 days a year
C.
365 day a year
D.
360 day a year
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Interest rate of certificate of deposits is quoted using a time span of 360 day a year. A certificate of deposit (CD) is a product offered by banks and credit unions that offers an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.