Large-Denomination CDs Are ________,So That Like a Bond They Can

question 56

Multiple Choice

Large-denomination CDs are ________,so that like a bond they can be resold in a ________ market before they mature.

• A)nonnegotiable;secondary
• B)nonnegotiable;primary
• C)negotiable;secondary
• D)negotiable;primary

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Definitions:

Total Return

Total Return is the complete return on an investment over a specified time period, encompassing both capital gains and dividends or interest.

Financial Markets

Platforms where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs.

Extraordinary Returns

Profits that significantly exceed the norm or benchmark, often due to unusual or rare events affecting the investment.

Net Present Values

The calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate to determine if it will yield a positive return.