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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Frank

24 hours 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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Armanda

5 days 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

9 days 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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Rhea

12 days ago

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

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Patti

13 days ago

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

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Harris

18 days ago

I think the answer is C) Certificates of deposit.

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