Pd is a well-known catalyst in a number of processes such as hydrogenation and hydrogenolysis. Here, measured magnetic properties of nanoparticles (NPs) of Pd with sizes D=12nm and 7.7nm are compared with those of bulk Pd. These investigations show that the broad maximum in the magnetic susceptibility χ=M/H vs. T data near 100K observed in bulk Pd is also observed in the NPs. In addition, the magnitude of χ is found to increase with decrease in D and hysteresis characteristic of ferromagnetism is observed in the NPs. These results are interpreted in terms of a core-shell model with bulk-like core but Pd atoms in the shell exhibiting ferromagnetism. The broad maximum in χ is interpreted in terms of the Fermi-liquid behavior of Stoner paramagnets. Applications to catalysis are discussed.