Who Negotiates Certificate of Deposit Rates? Finance MCQ

1 FINANCE MCQS

CD rates are usually negotiated between __________?

Bank and COD buyer
Bank and stock market
Stock market and COD buyer
Indirect negotiations of buyers

Correct Answer: A. Bank and COD buyer

Detailed Explanation

The rates of Certificates of Deposit (CDs) are generally set through direct negotiation between the issuing bank and the buyer. This is because CDs are time deposits, and the terms such as rate, amount, and maturity are agreed upon between both parties.

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CD rates are usually negotiated between __________?

CD rates are usually negotiated between __________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…