What Does the Term Negotiable Mean, with Regard to Negotiable

question 47

Multiple Choice

What does the term negotiable mean, with regard to negotiable certificates of deposit?

• A) The CD can be sold to another investor if the owner needs to cash it in before its maturity date.
• B) The rate of interest on the CD is subject to negotiation.
• C) The CD is automatically reinvested at its maturity date.
• D) The CD has staggered maturity dates built in.
• E) The interest rate paid on the CD will vary with a designated market rate.

---

Definitions:

Pure Monopolist

A single seller in a market with no close substitutes for its product, dictating the market terms and prices.

Profit-Maximizing

A strategy where a firm determines the price and output level that returns the greatest profit.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers, often based on their willingness to pay, market segment, or geographical location.

Service Industries

Industries that provide services rather than producing goods, such as healthcare, banking, and education.