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"Term bond" are bonds whose principle is payable at maturity. What does mean by Term certificate?

Correct answer: B. A certificate of deposit whose principal is payable at maturity

  • A. A bond with a longer time to maturity
  • B. A certificate of deposit whose principal is payable at maturity
  • C. A certificate of deposit with a shorter time to maturity
  • D. certificate of deposit with a longer time to maturity

Explanation

A term certificate is a certificate of deposit held for a fixed period, with its principal repaid when it matures. It is not defined simply by having a longer or shorter maturity.

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