SIE Exam Practice Question 938

Question: 938

____ Certificate of deposit

A. Intended to be held until maturity, but can be redeemed prior to maturity for a penalty.

B. Dividends are declared in local currencies and paid in U.S. dollars.

C. Can be redeemed at any time without penalty; objective is to earn interest for shareholders.

D. Unsecured promissory note issued by corporations with a fixed maturity of up to 270 days.