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Distinguish between a note and a certificate of deposit. How are they alike? How are they different? Explain your answer.
On Jun 21, 2024
Notes and CD's are two-party instruments involving a maker and a payee. They are alike in that in each case one party promises to pay the other party money. They are different in that with a certificate of deposit, a bank is receiving money, acknowledging it, and promising to repay it. A CD is a specialized form of promissory note.