Q387
Liquidity status of certificate of deposit which is more negotiable is considered as
A.
certified liquidity
B.
term liquidity
C.
more liquid
AnswerD.
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.