Valley National Bank issued a note promising to repay an investor on October 1, 2011, three years from the date of issue, plus interest. The note

A. is a certificate of deposit, and it will pay a lower rate of interest than a regular savings account at Valley.
B. is a certificate of deposit, and it will pay a higher rate of interest than a regular savings account at Valley.
C. is a certificate of deposit, and whether the bank pays a higher or lower rate of interest than it pays on its regular savings accounts depends upon particular bank policy.
D. constitutes a trade acceptance.


Answer: B

Business

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