Detailed Answer
(d) The requirement is to identify the item that is not a
characteristic of a negotiable certificate of deposit. The correct
answer is (d) because negotiable certificates of deposit have
lower yields than banker’s acceptances and commercial paper—
they have less risk. Answer (a) is incorrect because negotiable
certificates of deposit do have a secondary market. Answer (b) is
incorrect because negotiable certificates of deposit are regulated
by the Federal Reserve System. Answer (c) is incorrect because
they are usually sold in denominations of a minimum of
$100,000.