Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest

Question

3 years ago

5

Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest

on July 1, 2023. Home Bank has issued Gwen
a. a certificate of deposit.
b. a check.
c. a nonnegotiable instrument.
d. a trade acceptance

Business

2 answers:

Allisa [31] · Answer 1 · 2021-11-29T14:12:07+03:00

Answer:

certificate of deposit

Explanation:

A certificate of deposit (CD) is a financial instrument sold by banks

The bank gives this CD to Gwen. She cannot withdraw the cash until July 1, 2023

The certificate of deposit are risk-free investment. The difference with savings account is that a certificate of deposit has a fixed term and fixed interest rate and it is create with the idea of holding the title until maturity. Not doing so, may inccur in penalties so a portion of the interest will be negate.

As this is a financial instrument, the bank issued a title to the investor to recognize his investment.

nirvana33 [79] · Answer 2 · 2021-11-29T15:48:23+03:00

nirvana33 [79]3 years ago

3 0

Answer:

a. a certificate of deposit.

Explanation:

Gwen deposits $5,000 with Home Bank on July 1, 2018. Home Bank promises to repay Gwen the $5,000 plus 1 percent annual interest on July 1, 2023. Home Bank has issued Gwen a certificate of deposit.