Vidyalelo
Management · Q387

International Finance and Treasury

Graduate and Post Graduate · Management · question 387

Q387

Liquidity status of certificate of deposit which is more negotiable is considered as

A.
certified liquidity
B.
term liquidity
C.
more liquid
Answer
D.
less liquid

Answer: Option C

Solution

Answer: Option C
Solution:
Liquidity status of certificate of deposit which is more negotiable is considered as more liquid. Liquid certificates of deposit are a type of certificate of deposit (CD) that allow investors to make withdrawals without incurring a penalty. The funds in the account are accessible throughout the lifetime of the product where most traditional CD's apply a hefty fee for withdrawing early, reducing the interest earned to that point.