A ______ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union.
A) commercial paper
B) CD
C) Treasury bill
D) bond

Question

Quizplus · Accepted Answer

CD stands for Certificate of Deposit, which is a time deposit that earns a fixed interest rate for a specified period of time. The depositor cannot withdraw the funds before the maturity date without incurring a penalty. Commercial paper, Treasury bills, and bonds are all different types of debt securities, but they are not time deposits at financial institutions.

A ______ Is a Time Deposit at a Financial Institution