Regarding a certificate of deposit:
A) the financial institution is the drawee.
B) the financial institution is the drawer.
C) the financial institution is the payee.
D) the financial institution is the maker.
E) there is no financial institution involved with a certificate of deposit

Question

Quizplus · Accepted Answer

The financial institution is the maker of the certificate of deposit, which is a type of promissory note issued by a bank or other financial institution to a depositor, who is the payee. The terms of the certificate specify the amount of the deposit, the interest rate, and the length of time the funds must be held. The financial institution guarantees payment of the principal plus interest to the depositor upon maturity.

Regarding a Certificate of Deposit