QAEconomics › Which type of account typically has low liquidity? Why?
Q

Which type of account typically has low liquidity? Why?

A

A certificate of deposit (CD) is a security that certifies the existence of a deposit account with a financial institution such as a bank. An enterprise can buy a certificate of deposit and sell it to anyone. Such certificates are considered an analog of a common bill of exchange. Therefore, the CD has low liquidity because of the practice of money withdrawal that is usually associated with it.

2 weeks ago
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