Question

23) A negotiable certificate of deposit A) is a term security because it has a specified maturity date. B) is a bearer instrument, meaning whoever holds the certificate at maturity receives the principal and interest. C) can be bought and sold until maturity. D) all of the above. E) only A and B of the above.

Answer 1

Answer: A,B,C are correct

Given the explanations for options A, B, and C, the correct answer is D) all of the above. A negotiable certificate of deposit is indeed a term security, a bearer instrument, and can be bought and sold until maturity.
To summarize, a negotiable certificate of deposit is a financial instrument with a specified maturity date. It can be bought and sold in the secondary market until it reaches maturity, and whoever holds the certificate at that time is entitled to receive the principal and interest.