A debt instrument sold by a bank to its depositors that pays annual interest of a given amount and at maturity pays back the original purchase price is called O 1) negotiable commercial paper O 2) a non-negotiable certificate of deposit O 3) a municipal bond with 1 year to maturity O 4) federal funds with 5 years to maturity O 5) a negotiable certificate of deposit 6) none of the answers are correct

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A debt instrument sold by a bank to its depositors that pays annual interest of a
given amount and at maturity pays back the original purchase price is called
O 1) negotiable commercial paper
O 2)
a non-negotiable certificate of deposit
O 3) a municipal bond with 1 year to maturity
O 4) federal funds with 5 years to maturity
O5)
a negotiable certificate of deposit
6)
none of the answers are correct
Transcribed Image Text:A debt instrument sold by a bank to its depositors that pays annual interest of a given amount and at maturity pays back the original purchase price is called O 1) negotiable commercial paper O 2) a non-negotiable certificate of deposit O 3) a municipal bond with 1 year to maturity O 4) federal funds with 5 years to maturity O5) a negotiable certificate of deposit 6) none of the answers are correct
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