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Question
IBM creates and sells additional stock to the investment banker, Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public.A negotiable CD is
A. a time draft payable to a seller of goods, with payment guaranteed by a bank
B. a loan to an individual or business to purchase a home, land, or other real property
C. a short-term fund transferred between financial institutions usually for no more than one day
D. a marketable bank issued time deposit that specifies the interest rate earned and a fixed maturity date
E. a short-term unsecured promissory note issued by a company to raise funds for a short time period
Answer
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