Which of the Following Correctly Describes a Certificate of Deposit

question 14

Multiple Choice

Which of the following correctly describes a certificate of deposit?

• A) It is a draft that is payable by a bank.
• B) It is not considered to be a negotiable instrument.
• C) It is a note that is payable on demand.
• D) It is a note where the maker is a bank.

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Definitions:

Entry Fee

A charge that must be paid to gain access to a particular service, activity, or location.

Consumption

Refers to the act of using goods and services to satisfy needs and wants.

Income

The money received on a regular basis for work or through investments.

Optimal Consumption

The level of consumption at which a consumer achieves the highest possible satisfaction or utility given their income and the prices of goods and services.