What characteristic does a negotiable certificate of deposit possess?

A negotiable certificate of deposit (CD) is a financial instrument that is easily transferable and can be traded in the secondary market, which distinguishes it from non-negotiable CDs. This transferability means that the holder of the CD can sell or transfer ownership to another party before its maturity date, providing liquidity that is not typically available with standard CDs. This aspect reflects its negotiability, which is a primary characteristic of such instruments.

While the other characteristics listed in the options may pertain to CDs in a broader context, they do not define a negotiable CD specifically. For instance, FDIC insurance applies to many types of deposits but is not unique to negotiable CDs. The concept of being secured by specific assets typically relates more to secured loans than to CDs. Finally, while negotiable CDs can have maturities that vary, they can exceed one year, making the assertion of a maximum maturity misleading in this context. Thus, the ability to trade a negotiable certificate of deposit in the secondary market is what makes it a distinctive and valuable financial instrument.