Which of the following is a note of the bank where a payee purchases it and collects principle plus a set amount of interest in the future?
A) Certificate of deposit
B) Cashier's check
C) Certified check
D) Traveler's check
E) Draft

Question

Quizplus · Accepted Answer

A Certificate of Deposit (CD) is a financial product sold by banks to customers that offers a fixed interest rate over a specified period of time. Upon purchasing a CD, the buyer agrees to lend the bank money for a fixed period, after which the initial amount (principal) plus accrued interest is returned to the buyer.

Which of the Following Is a Note of the Bank