SIE (Securities Industry Essentials) Practice Exam

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Which of the following is a banking product rather than a security?

Stock
Bond
Certificate of deposit
Mutual fund

The correct answer is: Certificate of deposit

A certificate of deposit (CD) is a banking product because it is a type of deposit account where customers deposit a set amount of money for a fixed period of time and earn a fixed interest rate. It is considered a low-risk and safe investment for customers. Stocks, bonds, and mutual funds are all securities, which are investments that represent ownership of a company or debt from a government or corporation. These are riskier investments that can fluctuate in value and are not guaranteed by the bank. While CDs can be purchased at a bank, they are not issued by the bank and are not considered securities. Therefore, C is the correct answer as it is the only one that is a banking product rather than a security.