A Certificate of Deposit (CD)is Issued When Lo-Risk Invest LLC

question 24

Multiple Choice

A certificate of deposit (CD) is issued when Lo-Risk Invest LLC deposits funds with Money Bank on the bank's promise to repay the funds, with interest, on a certain date. Lo-Risk cannot withdraw the funds before the date of maturity because

• A)the bank is both the issuer of the instrument and the drawee.
• B)a CD is a time deposit.
• C)a CD cannot be sold or negotiated to a third party before maturity.
• D)a CD is not a three-party instrument.

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Definitions:

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An antiseptic preparation used to clean skin wounds or to prepare the skin before surgery, effective in killing bacteria, fungi, and viruses.

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A chemical compound used for disinfection, bleaching, and as an antiseptic owing to its oxidative properties.

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The act of working together cooperatively as part of a group or team to achieve a common goal, especially in sports.

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The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.