The deposit issued by bank are usually negotiable and have specific maturity date and interest rate, hence it is classified as _____________?
Correct answer: C. negotiable certificate
- A. indirect certificate
- B. direct certificate
- C. negotiable certificate
- D. deposit certificate
Explanation
A bank deposit that is negotiable, carries a stated interest rate, and has a fixed maturity is a negotiable certificate of deposit. The word negotiable distinguishes it from an ordinary deposit certificate.
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