Asked by Kirsten Landsverk on May 10, 2024
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Vivian purchases a certificate of deposit for $10,000 at Right Now Bank. What does the certificate of deposit give Vivian?
A) A note of the bank that gives the right to collect the principal plus interest at a future date.
B) An instrument that states that it is payable 30 days after presentment.
C) A time instrument that is payable within 10 days after presentment.
D) An instrument that states that it is payable on demand or at sight or otherwise indicates that it is payable at the will of the holder, or does not state any time of payment.
E) An instrument that states that it is payable on demand or at sight or otherwise indicates that it is payable at the will of the holder; does not state any time of payment; or is payable within ten days after presentment.
Certificate of Deposit
A savings certificate with a fixed maturity date, specified fixed interest rate, and can be issued in any denomination aside from minimum investment requirements.
Principal
The main party to a transaction, contract, or financial instrument, or the amount of a debt or investment before interest.
Interest
The cost of borrowing money, typically expressed as an annual percentage of the principal, or the profit earned on savings and investments.
- Discern the different types of negotiable instruments sanctioned by the Uniform Commercial Code (UCC).
- Gain an understanding of the requirements for an instrument's negotiability.
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Learning Objectives
- Discern the different types of negotiable instruments sanctioned by the Uniform Commercial Code (UCC).
- Gain an understanding of the requirements for an instrument's negotiability.
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