Which financial market instrument is a negotiable money market certificate issued by commercial banks acknowledging a cash deposit for a fixed term?

Explanation

• A Certificate of Deposit (CD) is a short-term negotiable money market security issued by commercial banks with specified maturity and interest rate.
• CDs offer higher interest rates than standard savings accounts due to fixed maturity commitments.
• Secondary markets exist for trading large-denomination negotiable CDs prior to maturity.