A certificate of deposit differs from a promissory note in that:
A) the maker is always a bank.
B) there are three parties to the transaction.
C) the payee of a CD must be paid on demand.
D) Both the maker is always a bank and the payee of a CD must be paid on demand .

Question

A certificate of deposit differs from a promissory note in that:
A) the maker is always a bank.
B) there are three parties to the transaction.
C) the payee of a CD must be paid on demand.
D) Both the maker is always a bank  and the payee of a CD must be paid on demand .

Quizplus · Accepted Answer

A certificate of deposit (CD) is a type of promissory note issued by a bank, where the bank is the maker, unlike a regular promissory note which can be issued by any individual or entity.

A Certificate of Deposit Differs from a Promissory Note in That