BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Certificates of Deposit
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Long Term
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Short Term
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -A short-term CD is a certificate of deposit that has a maturity term of less than one year. Banks can offer short-term CDs with varying maturity terms.
Detailed explanation-2: -Definition: A certificate of deposit (CD) is a short-term security with a fixed interest rate and maturity date issued by a bank that seeks to raise funds from the secondary money market.
Detailed explanation-3: -Maturity Period: A Certificate of Deposit issued by the commercial banks can have maturity period ranging from 7 days to 1 year. For financial institutions, it ranges is from 1 year to 3 years.
There is 1 question to complete.