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What is the most desirable form of deposit from a seller's point of view?

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User StaticBR
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Final answer:

The most desirable form of deposit from a seller's point of view is a certificate of deposit (CD), which offers a stable source of funds due to the time commitment and often carries a higher interest rate with penalties for early withdrawal.

Step-by-step explanation:

The most desirable form of deposit from a seller's point of view is likely a certificate of deposit (CD). Since a CD requires the depositor to commit their funds for a specified period of time, it provides a seller, in this case, a bank, with a more stable source of funds. In addition, banks typically pay a higher interest rate for CDs than for regular savings accounts but benefit from the penalty imposed on customers for early withdrawal, thus discouraging the liquidation of these deposits. From a business perspective, such guarantees are akin to a money-back guarantee offered by sellers in the goods market to promise quality and encourage purchases.

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User MelMass
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