Question

A certificate of deposit requires a minimum investment of --- and in its multiples, thereafter.

• A. 10,000
• B. 50,000
• C. 1 lakh
• D. 2 lakhs

Answer 1

Answer:

C. 1 lakh

Certificate of Deposits:

• Certificate of deposits is a negotiable money market instrument issued in dematerialized form or usance promissory note, against the fund deposited at a bank or other eligible financial institutions issued for a period of time. 

• Certificate of Deposits was introduced in India in 1989. 

• CDs issued as per directions of RBI

• Minimum Amount - 1 Lakh and can invest it's multiples