Final answer:
A Certificate of time deposit is a negotiable instrument that represents a financial asset, specifying loan details such as amount, interest, and maturity date, and is transferable. The correct option is C.
Step-by-step explanation:
The question asks to identify which of the options is a negotiable instrument.
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document. Looking at the options:
- Letter of credit – though it acts as a guarantee of payment, it is not in itself a negotiable instrument.
- Treasury warrant – is a government order for payment but is not considered a traditional negotiable instrument.
- Certificate of time deposit – is indeed a negotiable instrument as it can be transferred to another party.
- Postal money order – is negotiable but generally categorized differently from typical negotiable instruments like checks and certificates of deposit.
Therefore, the correct answer is C. A Certificate of time deposit is a financial asset that specifies the amount of money loaned, the interest rate, and due date, and it can be transferred, fulfilling the conditions of a negotiable instrument.