SOFE Exam SOFA-CFE Topic 8 Question 74 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 74
Topic #: 8

[All SOFA-CFE Questions]

What provide yields competitive with commercial paper, are interest-bearing instruments issued by banks?

AMoney market

BDeposit-Draft

CCertificates of deposit

DMutual funds

Show Suggested Answer

Suggested Answer: A

by Benedict at Aug 30, 2023, 05:05 PM

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Ligia

1 months ago

Wait, is this a trick question? I mean, who Ligian uses deposit-drafts anymore? That's so old-school!

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Ben

4 days ago

I still see some banks offering deposit-drafts, but certificates of deposit are definitely more common now.

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Vallie

9 days ago

C) Certificates of deposit

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Martina

14 days ago

A) Money market

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Therese

1 months ago

Mutual funds, really? That's like a completely separate investment vehicle from what the question is asking about.

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Johnna

4 days ago

C) Certificates of deposit

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Bernardine

8 days ago

A) Money market

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Frank

2 months ago

Deposit-drafts? What is this, the 1950s? I'm pretty sure the modern banking world has moved on from those.

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Tanja

3 days ago

D) Mutual funds

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Ailene

9 days ago

Deposit-drafts may be outdated, but they are still an option for some investors.

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Robt

13 days ago

C) Certificates of deposit

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Joanne

15 days ago

Deposit-drafts may be old-fashioned, but they are still a valid option for some investors.

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Sherrell

19 days ago

C) Certificates of deposit

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Tracey

24 days ago

A) Money market

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Mignon

1 months ago

A) Money market

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Armanda

2 months ago

Hmm, money market funds also yield pretty competitive returns. But I think certificates of deposit are the more direct bank-issued instruments mentioned in the question.

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Luisa

2 months ago

Certificates of deposit? That's the answer I was looking for! Banks issuing interest-bearing instruments, sounds like a no-brainer to me.

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Alesia

1 months ago

They are a popular choice for those looking for competitive yields.

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Hailey

1 months ago

Yes, certificates of deposit are interest-bearing instruments issued by banks.

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Rhea

2 months ago

I'm not sure, but I think it's A) Money market.

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Patti

2 months ago

I agree with Harris, Certificates of deposit offer competitive yields.

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Harris

2 months ago

I think the answer is C) Certificates of deposit.

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