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1 FINANCE MCQS

Negotiable certificates of deposit are traded in __________?

  • Secondary markets
  • Primary markets
  • Direct markets
  • Indirect markets
Correct Answer: A. Secondary markets

Detailed Explanation

Negotiable certificates of deposit (CDs) can be bought and sold after they are initially issued, which means they are actively traded in the secondary market. This feature makes them more liquid compared to non-negotiable CDs, which cannot be transferred to other parties.

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