Which of the following entities issues certificates of deposit (CDs)?

Certificates of Deposit (CDs) are time deposits, which are a type of savings account with a fixed interest rate and a fixed maturity date. They are issued by depository institutions, primarily commercial banks and credit unions. The issuing bank agrees to pay the depositor a specified interest rate in exchange for the depositor agreeing to leave the funds on deposit for the set term. While other entities may be involved in the CD market (e.g., broker-dealers selling them or the FDIC insuring them), the bank is the actual issuer of the certificate.

A. FDIC: The Federal Deposit Insurance Corporation (FDIC) is a government agency that insures deposits at member banks up to a specified limit; it does not issue financial products like CDs.
C. Broker-dealers: Broker-dealers may offer and sell "brokered CDs" to their clients, but they are acting as intermediaries. The underlying CD is still issued by and is a direct obligation of a bank.
D. Federal Reserve: The Federal Reserve is the central bank of the United States. Its functions include conducting monetary policy and regulating banks, not offering consumer deposit products like CDs.

1. FINRA (Financial Industry Regulatory Authority). "Certificates of Deposit (CDs)." FINRA.org. "A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest... CDs are issued by banks and credit unions..."

2. U.S. Securities and Exchange Commission (SEC). "Investor Bulletin: Certificates of Deposit (CDs)." Investor.gov, Feb. 20, 2019. "A CD is a special type of deposit account with a bank or thrift institution that typically offers a higher rate of interest than a regular savings account."

3. Federal Deposit Insurance Corporation (FDIC). "Deposit Insurance." FDIC.gov. This resource outlines the role of the FDIC as an insurer of deposits held in U.S. banks and savings associations, distinguishing its function from that of an issuer. For example, under "What's Covered?", it lists "Certificates of Deposit (CDs)" as an insured product, not an issued one.