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1 FINANCE MCQS

Negotiable certificates of deposit are issued by __________?

  • Financial market
  • Banks
  • Stock exchange
  • Business corporations
Correct Answer: B. Banks

Detailed Explanation

Negotiable certificates of deposit (CDs) are time deposits issued by banks to attract large deposits from investors. They can be traded in the secondary market before maturity, making them a liquid and low-risk investment option.

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