A CD whose maturity extends beyond one year is referred to as a:
A) Bearer CD
B) Multi-tiered CD
C) Rollover CD
D) Extended-maturity CD
E) None of the above

Question

Quizplus · Accepted Answer

CDs, or Certificates of Deposit, are typically short- to medium-term interest-bearing financial instruments offered by banks. By definition, they do not extend beyond one year; thus, any term suggesting a CD extends beyond one year does not align with the standard characteristics of CDs. Therefore, none of the provided options accurately describe a CD whose maturity extends beyond one year, as traditional CDs are not categorized in this manner.

A CD Whose Maturity Extends Beyond One Year Is Referred