answersLogoWhite

0


Best Answer

FDIC-insured negotiable certificates of deposit have few if any disadvantages in comparison to other government-backed securities. They are guaranteed by the FDIC, which is a government agency backed by an explicit legal guarantee by the U.S. Government. Since they are not actually deposits, but securities that are a claim on a deposit, they may be sold to other investors in the market rather than having to hold until maturity as with a conventional CD. They pay a higher coupon rate than other government guaranteed securities, such as Treasury bonds. One possible disadvantage is that they are insured only up to FDIC limit, which at the time of writing is $250,000.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Disadvantages of negotiable certificate of deposite on a firm cash management goal?
Write your answer...
Submit
Still have questions?
magnify glass
imp