Banking Practice Exam

The correct term for jumbo CDs acquired through a third-party broker is "brokered deposits." This term specifically refers to deposits that are placed by a broker with various financial institutions on behalf of their clients. Brokered deposits often include jumbo Certificates of Deposit (CDs), which are larger than the standard FDIC insurance limit, making it advantageous for investors who seek higher returns on their deposits.

Brokered deposits provide liquidity for banks while allowing investors to benefit from potentially higher interest rates that they may not get directly from a bank. It's a useful mechanism as it increases the access to various interest rates and terms that may not be available at local institutions.

Other choices, such as money market demand accounts and time deposit accounts, do not specifically refer to CDs obtained through brokers, which is a key distinction. Mortgage loans are entirely unrelated to the context of deposits and CDs, hence they do not fit the term being defined.