Vidyalelo
Management · Q416

International Finance and Treasury

Graduate and Post Graduate · Management · question 416

Q416

Rates of certificate of deposits are mostly negotiated between

A.
bank and COD buyer
Answer
B.
bank and stock market
C.
stock market and COD buyer
D.
indirect negotiations of buyers

Answer: Option A

Solution

Answer: Option A
Solution:
Rates of certificate of deposits are mostly negotiated between bank and COD buyer. 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.