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SOFE SOFA-CFE Exam - Topic 8 Question 74 Discussion

Posted by Benedict on Aug 30, 2023 at 05:05 PM

What provide yields competitive with commercial paper, are interest-bearing instruments issued by banks?

Suggested Answer: A

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41 comments · newest first
TA
Tammara 11 months ago
Not convinced, I thought mutual funds could compete too.
JA
Jaclyn 11 months ago
C is correct, they offer higher yields than commercial paper.
AV
Avery 11 months ago
Wait, are we sure about that? What about A?
JO
Joanna 11 months ago
I agree, C seems right!
RO
Rolland 12 months ago
Definitely think it's C, Certificates of deposit.
CL
Clemencia 12 months ago
Mutual funds don't seem right for this question; I remember they are more about pooling investments rather than being issued by banks.
NE
Nelida 12 months ago
I feel like deposit-drafts were mentioned in a practice question, but I don't think they match this definition.
RA
Raul 1 year ago
I remember studying money market instruments, but I can't recall if they are specifically issued by banks.
RI
Rikki 1 year ago
I think the answer might be certificates of deposit, but I'm not entirely sure. They seem to fit the description.
PA
Pamella 1 year ago
Money market funds could also be a possibility, but I don't think that's the right answer here. I'm leaning towards Certificates of deposit as the best choice.
YO
Yoko 1 year ago
Okay, I think I've got this. Certificates of deposit are the interest-bearing instruments issued by banks that provide yields competitive with commercial paper. I'm feeling confident about this one.
MA
Maia 1 year ago
Hmm, I'm a bit unsure about this one. I'll need to think it through carefully. Maybe I should review my notes on different types of bank instruments.
TI
Titus 1 year ago
I'm pretty sure the answer is Certificates of deposit. They are interest-bearing instruments issued by banks and provide yields competitive with commercial paper.
AN
Antonio 1 year ago
I think this question is testing our understanding of how the "disable-learning" command affects the VPLS forwarding database. I'll need to carefully read through the options to determine the correct behavior.
MA
Maybelle 1 year ago
I'm not sure if option B is the best choice here. Maybe we need to pass a specific record or parameter instead of the entire array. I'll have to review the requirements again.
CA
Caitlin 1 year ago
I'm a bit confused. I remember we discussed competitors who compete for income, but is that really the same as generic competitors?
LI
Ligia 1 year ago
Wait, is this a trick question? I mean, who Ligian uses deposit-drafts anymore? That's so old-school!
BU
Buck 1 year ago
↳ replying to Ligia
D) Mutual funds
BE
Ben 1 year ago
↳ replying to Ligia
I still see some banks offering deposit-drafts, but certificates of deposit are definitely more common now.
VA
Vallie 1 year ago
↳ replying to Ligia
C) Certificates of deposit
MA
Martina 1 year ago
↳ replying to Ligia
A) Money market
TH
Therese 1 year ago
Mutual funds, really? That's like a completely separate investment vehicle from what the question is asking about.
CA
Carey 1 year ago
↳ replying to Therese
Yes, certificates of deposit are interest-bearing instruments issued by banks.
PO
Portia 1 year ago
↳ replying to Therese
I think certificates of deposit are the right answer.
JO
Johnna 1 year ago
↳ replying to Therese
C) Certificates of deposit
BE
Bernardine 1 year ago
↳ replying to Therese
A) Money market
FR
Frank 1 year ago
Deposit-drafts? What is this, the 1950s? I'm pretty sure the modern banking world has moved on from those.
TA
Tanja 1 year ago
↳ replying to Frank
D) Mutual funds
AI
Ailene 1 year ago
↳ replying to Frank
Deposit-drafts may be outdated, but they are still an option for some investors.
RO
Robt 1 year ago
↳ replying to Frank
C) Certificates of deposit
JO
Joanne 1 year ago
↳ replying to Frank
Deposit-drafts may be old-fashioned, but they are still a valid option for some investors.
SH
Sherrell 1 year ago
↳ replying to Frank
C) Certificates of deposit
TR
Tracey 1 year ago
↳ replying to Frank
A) Money market
MI
Mignon 1 year ago
↳ replying to Frank
A) Money market
AR
Armanda 1 year ago
Hmm, money market funds also yield pretty competitive returns. But I think certificates of deposit are the more direct bank-issued instruments mentioned in the question.
LU
Luisa 1 year ago
Certificates of deposit? That's the answer I was looking for! Banks issuing interest-bearing instruments, sounds like a no-brainer to me.
AL
Alesia 1 year ago
↳ replying to Luisa
They are a popular choice for those looking for competitive yields.
HA
Hailey 1 year ago
↳ replying to Luisa
Yes, certificates of deposit are interest-bearing instruments issued by banks.
RH
Rhea 1 year ago
I'm not sure, but I think it's A) Money market.
PA
Patti 1 year ago
I agree with Harris, Certificates of deposit offer competitive yields.
HA
Harris 2 years ago
I think the answer is C) Certificates of deposit.
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