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:

Criminal Activity

Actions that involve conduct deemed illegal by law, potentially leading to prosecution and punishment.

Working-Class

A social group consisting of people employed in low-paying wage jobs or manual labor.

Merton

Refers to Robert K. Merton, an influential American sociologist known for his theories on social structure, anomie, and the sociology of science.

Anomie

A condition in society characterized by a breakdown or absence of social norms and values, often leading to a state of normlessness.