A time deposit that takes the form of a negotiable instrument is a:
A)checking account.
B)T-bill.
C)certificate of deposit.
D)money market account.

Question

Quizplus · Accepted Answer

A certificate of deposit (CD) is a time deposit where the depositor agrees to keep the funds in the account for a set period, ranging from a few months to several years, in exchange for a fixed interest rate. CDs can be issued as negotiable instruments that can be bought and sold in the secondary market, making them a useful investment tool for those looking for low-risk, fixed-income products. Checking accounts, T-bills, and money market accounts are not time deposits in the form of negotiable instruments, so they are not the best choice for this question.

A Time Deposit That Takes the Form of a Negotiable