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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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