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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
1 year ago
Wait, are they really that much higher than commercial paper?
CA
Caprice
1 year ago
Agree, yields are usually lower than other options.
SE
Serina
1 year ago
$100,000 minimum is pretty standard for these.
AM
Amber
1 year 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.