The rates of certificate of deposits are mostly negotiated between ___________?
Correct answer: A. bank and COD buyer
- A. bank and COD buyer
- B. bank and stock market
- C. stock market and COD buyer
- D. indirect negotiations of buyers
Explanation
A certificate of deposit is issued by a bank to a buyer or depositor, and its rate is negotiated between these two parties. The stock market is not normally involved in setting the CD rate.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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