The type of negotiable certificate of deposits is usually classified as ___________?
Correct answer: B. bearer instrument
- A. primary instrument
- B. bearer instrument
- C. term instrument
- D. interim instrument
Explanation
Negotiable certificates of deposit are normally bearer instruments, meaning ownership passes through possession rather than registration in a named holder’s account. Their negotiability allows them to be sold in the secondary market.
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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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