Q424
Negotiable certificate of deposit with one year maturity pays interest
A.
annually
B.
semi-annually
AnswerC.
monthly
D.
every two weeks
Answer: Option B
Solution
Answer: Option B
Solution:
Negotiable certificate of deposit with one year maturity pays interest semi-annually. A negotiable certificate of deposit (NCD) is a certificate of deposit with a minimum face value of $100,000. They are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed in before maturity.