Vivian purchases a certificate of deposit for $10,000 at Right Now Bank. What does the certificate of deposit give Vivian?
A) A note of the bank that gives the right to collect the principal plus interest at a future date.
B) An instrument that states that it is payable 30 days after presentment.
C) A time instrument that is payable within 10 days after presentment.
D) An instrument that states that it is payable on demand or at sight or otherwise indicates that it is payable at the will of the holder, or does not state any time of payment.
E) An instrument that states that it is payable on demand or at sight or otherwise indicates that it is payable at the will of the holder; does not state any time of payment; or is payable within ten days after presentment.

Question

Quizplus · Accepted Answer

Certificates of Deposit (CDs) are time deposits offered by banks that pay interest. They give the holder the right to collect the principal amount plus accrued interest at a predetermined future date, making option A correct.

Vivian Purchases a Certificate of Deposit for $10,000 at Right