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ACI

3I0-012 · Question #331

What is the major difference between a CD and a deposit?

The correct answer is C. The CD is a transferable instrument. See the full explanation below for the reasoning.

Question

What is the major difference between a CD and a deposit?

Options

  • AThe CD yields a higher rate of return
  • BThe CD has less credit risk
  • CThe CD is a transferable instrument
  • DThe CD has a shorter range of maturities

How the community answered

(47 responses)
  • A
    4% (2)
  • B
    2% (1)
  • C
    83% (39)
  • D
    11% (5)

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Full 3I0-012 Practice