A. certified liquidity
B. term liquidity
C. more liquid
D. less liquid
✅ The correct answer is option C.
Liquidity status of certificate of deposit which is more negotiable is considered as more liquid. Liquid certificates of deposit are a type of certificate of deposit (CD) that allow investors to make withdrawals without incurring a penalty. The funds in the account are accessible throughout the lifetime of the product where most traditional CD’s apply a hefty fee for withdrawing early, reducing the interest earned to that point.
Liquidity status of certificate of deposit which is more negotiable is considered as more liquid. Liquid certificates of deposit are a type of certificate of deposit (CD) that allow investors to make withdrawals without incurring a penalty. The funds in the account are accessible throughout the lifetime of the product where most traditional CD’s apply a hefty fee for withdrawing early, reducing the interest earned to that point.