A key difference between small-denomination and large-denomination time deposits is that

Question

Quizplus · Accepted Answer

Large-denomination time deposits, also known as negotiable CDs, can be bought and sold on secondary markets, while small-denomination time deposits cannot. Option A is incorrect as small-denomination time deposits do pay interest, however, the interest rate is lower than larger deposits. Option C is partially correct as large-denomination time deposits do carry a penalty for early withdrawal, but it is not significantly higher than small-denomination deposits. Option D is incorrect as small-denomination time deposits typically have a lower penalty for early withdrawal compared to larger deposits.

A Key Difference Between Small-Denomination and Large-Denomination Time Deposits Is