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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39e0df17-ad8c-4199-aeec-4dbcd0a552ce%2F567a5675-56eb-4c7e-a0da-989639ab3f55%2Fm23mgl_processed.jpeg&w=3840&q=75)
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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