The interest rate of certificate of deposits is quoted using a time span of ___________?
Correct answer: D. 360 day a year
- A. 250 days a year
- B. 150 days a year
- C. 365 day a year
- D. 360 day a year
Explanation
Certificates of deposit are money-market instruments, and their interest rates are conventionally quoted on a 360-day year. This differs from the 365-day calendar convention used in some other calculations.
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