In context with banking, a Certificate of Deposit is ___:

In context with banking, a Certificate of Deposit is ___:
[A]Money Market Instrument
[B]Negotiable Instrument
[C]Transferable instrument
[D]All of above

All of above
A Certificate of Deposit is a time deposit that is payable at the end of a specified term. CDs generally pay a fixed interest rate and generally offer a different interest rate than other types of deposit accounts. If an early withdrawal from the CD prior to the end of the term is permitted, a penalty is usually assessed. CD is sold at discount value and being a money market instrument, can be transferred to other person through negotiation.

Advertisement

Category: Banking Exams Material Section

This question "In context with banking, a Certificate of Deposit is ___:" was published on GKToday on May 18, 2015 at 1:13 pm. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

Comments