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SOFE SOFA-CFE Exam - Topic 8 Question 74 Discussion

What provide yields competitive with commercial paper, are interest-bearing instruments issued by banks?
A) Money market
B) Deposit-Draft
C) Certificates of deposit
D) Mutual funds

SOFE SOFA-CFE Exam - Topic 8 Question 74 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 74
Topic #: 8
[All SOFA-CFE Questions]

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

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Suggested Answer: A

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

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Tammara
8 months ago
Not convinced, I thought mutual funds could compete too.
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Jaclyn
8 months ago
C is correct, they offer higher yields than commercial paper.
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Avery
8 months ago
Wait, are we sure about that? What about A?
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Joanna
8 months ago
I agree, C seems right!
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Rolland
9 months ago
Definitely think it's C, Certificates of deposit.
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Clemencia
9 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.
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Nelida
9 months ago
I feel like deposit-drafts were mentioned in a practice question, but I don't think they match this definition.
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Raul
9 months ago
I remember studying money market instruments, but I can't recall if they are specifically issued by banks.
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Rikki
9 months ago
I think the answer might be certificates of deposit, but I'm not entirely sure. They seem to fit the description.
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Pamella
9 months 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.
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Yoko
9 months 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.
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Maia
9 months 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.
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Titus
9 months 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.
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Antonio
9 months 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.
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Maybelle
9 months 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.
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Caitlin
10 months ago
I'm a bit confused. I remember we discussed competitors who compete for income, but is that really the same as generic competitors?
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Ligia
1 year ago
Wait, is this a trick question? I mean, who Ligian uses deposit-drafts anymore? That's so old-school!
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Buck
1 year ago
D) Mutual funds
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Ben
1 year ago
I still see some banks offering deposit-drafts, but certificates of deposit are definitely more common now.
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Vallie
1 year ago
C) Certificates of deposit
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Martina
1 year ago
A) Money market
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Therese
1 year ago
Mutual funds, really? That's like a completely separate investment vehicle from what the question is asking about.
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Carey
1 year ago
Yes, certificates of deposit are interest-bearing instruments issued by banks.
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Portia
1 year ago
I think certificates of deposit are the right answer.
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Johnna
1 year ago
C) Certificates of deposit
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Bernardine
1 year ago
A) Money market
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Frank
1 year ago
Deposit-drafts? What is this, the 1950s? I'm pretty sure the modern banking world has moved on from those.
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Tanja
1 year ago
D) Mutual funds
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Ailene
1 year ago
Deposit-drafts may be outdated, but they are still an option for some investors.
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Robt
1 year ago
C) Certificates of deposit
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Joanne
1 year ago
Deposit-drafts may be old-fashioned, but they are still a valid option for some investors.
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Sherrell
1 year ago
C) Certificates of deposit
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Tracey
1 year ago
A) Money market
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Mignon
1 year ago
A) Money market
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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.
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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.
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Alesia
1 year ago
They are a popular choice for those looking for competitive yields.
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Hailey
1 year ago
Yes, certificates of deposit are interest-bearing instruments issued by banks.
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Rhea
1 year ago
I'm not sure, but I think it's A) Money market.
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Patti
1 year ago
I agree with Harris, Certificates of deposit offer competitive yields.
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Harris
1 year ago
I think the answer is C) Certificates of deposit.
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