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Question
Which of the following is true of a certificate of deposit?a. It is sold by large corporations to raise short-term funds.
b. A fall in its demand will lead to an increase in the price of the security and a fall in its yield to maturity.
c. Higher the term to maturity of a certificate of deposit, higher the yield to maturity.
d. It is not a liquid security and cannot be transferred from one party to another.
Answer
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