Asked by Kaitlynn McEwen on Jun 03, 2024
Verified
A __________ is a specialized form of promise to pay money given by a maker in which the bank is the maker.
A) note
B) certificate of deposit
C) trade acceptance
D) cashier's check
Cashier's Check
A bank-issued check that is drawn from the bank's own funds and signed by a cashier, commonly used for significant transactions requiring guaranteed funds.
Certificate of Deposit
A financial product offered by banks that locks in a sum of money for a fixed period, offering higher interest rates than regular savings accounts.
Maker
The individual or entity that creates or issues a promissory note and is responsible for repaying the debt specified in that note.
- Distinguish the properties and contrasts between distinct forms of negotiable instruments such as checks, drafts, promissory notes, and certificates of deposit.
Verified Answer
XM
Xavier MalikJun 09, 2024
Final Answer :
B
Explanation :
A certificate of deposit (CD) is a specialized form of promise to pay money given by a maker, where the bank is the maker, indicating a time deposit with a bank. CDs are savings certificates with a fixed maturity date and specified fixed interest rate.
Learning Objectives
- Distinguish the properties and contrasts between distinct forms of negotiable instruments such as checks, drafts, promissory notes, and certificates of deposit.