18-103 Wholesale Certificates of Deposit

question 120

Multiple Choice

18-103 Wholesale certificates of deposit

• A)are less than $100,000 in denomination.
• B)cannot be rolled over prior to maturity.
• C)can be resold on the secondary market.
• D)are sold only to other financial intermediaries.
• E)are covered by Federal deposit insurance.

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Definitions:

Proceeds

The amount of money received from a sale or transaction, often after deducting costs or expenses.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make the required payments.

Debtor

A person or organization that has a debt or financial liability to another entity.

Perfection

A legal process that gives a secured creditor priority over claims from other creditors regarding a debtor's asset.