Gwen deposits $6,000 with Hearthstone Bank on July 1, 2016. Hearthstone promises to repay Gwen the $5,000 plus 2 percent annual interest on July 1, 2021. Hearthstone issued to Gwen
A)a certificate of deposit.
B)a check.
C)a nonnegotiable instrument.
D)a trade acceptance.

Question

Gwen deposits $6,000 with Hearthstone Bank on July 1, 2016. Hearthstone promises to repay Gwen the $5,000 plus 2 percent annual interest on July 1, 2021. Hearthstone issued to Gwen​
A)a certificate of deposit.
B)a check.
C)a nonnegotiable instrument.
D)a trade acceptance.

Quizplus · Accepted Answer

A certificate of deposit is a savings certificate with a fixed maturity date and specified fixed interest rate, which is what Hearthstone Bank issued to Gwen.

Gwen Deposits $6,000 with Hearthstone Bank on July 1, 2016