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Which one of the following is not a characteristic of a negotiable certificate of deposit? Negotiable certificates of deposit:
Suggested Answer: D
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Choice 'd' is correct. Negotiable CDs generally carry interest rates slightly lower than bankers' acceptances (which are drafts drawn on deposits at a bank) or commercial paper (which is unsecured debt issued by credit worthy customers).
Choice 'a' is incorrect. Negotiable CDs have a formal secondary market.
Choice 'b' is incorrect. Negotiable CDs are a product of the banking industry, which is regulated by the Federal Reserve Board.
Choice 'c' is incorrect. Negotiable CDs are usually sold in denominations of a minimum of $100,000.
8 comments · newest first
NO
Noah
11 months ago
Wait, are they really that much higher than commercial paper?
CA
Caprice
12 months ago
Agree, yields are usually lower than other options.
SE
Serina
12 months ago
$100,000 minimum is pretty standard for these.
AM
Amber
12 months ago
I thought they were regulated by the FDIC, not the Fed.
GL
Glenn
1 year ago
They definitely have a secondary market.
MO
Monte
1 year ago
I got this! Authentication is all about confirming you are who you say you are. The answer has to be A.
JA
Janella
1 year ago
Hmm, I'm not sure about this one. Multi-channel and e-commerce both seem like they could be related to selling through different channels. I'll have to think this through carefully.
SO
Solange
1 year ago
Okay, let me think this through - the LSP traverses R1-R2-R4-R6, so I need to focus on the nodes along that path.