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 time deposit offered by banks and credit unions, where the maker is indeed always a bank. Unlike promissory notes, which can be issued by individuals or companies, CDs are specific financial products offered by banking institutions.

A Certificate of Deposit Differs from a Promissory Note in That