The market for negotiable CDs is segmented into two segments

Question

The market for negotiable CDs is segmented into two segments - prime and nonprime.

Quizplus · Accepted Answer

The market for negotiable Certificates of Deposit (CDs) is indeed segmented into two main segments: prime and nonprime. Prime CDs are issued by highly rated financial institutions and carry lower interest rates due to their lower risk, while nonprime CDs are issued by institutions with lower credit ratings and offer higher interest rates to compensate for the higher risk.