1) Large denomination CDs are ________, so that like a bond they can be resold in a ________ market before they mature.
A) nonnegotiable; secondary
B) nonnegotiable; primary
C) negotiable; secondary
D) negotiable; primary
2) Because ________ are less liquid for the depositor than ________, they earn higher interest rates.
A) money market deposit accounts; time deposits
B) checkable deposits; passbook savings
C) passbook savings; checkable deposits
D) passbook savings; time deposits
3) Because ________ are less liquid for the depositor than ________, they earn higher interest rates.
A) passbook savings; time deposits
B) money market deposit accounts; time deposits
C) money market deposit accounts; passbook savings
D) time deposits; passbook savings
4) Banks acquire the funds that they use to purchase income earning assets from such sources as
A) cash items in the process of collection
B) savings accounts.
C) reserves.
D) deposits at other banks.