Question

A short term deposit instrument, issued by banks and financial institutions, to raise a large amount of money

• A. Certificate of Deposits
• B. Savings Bonds
• C. Treasury Bills
• D. Corporate Bonds

Answer 1

Answer:

A. Certificate of Deposits

Certificate of Deposits (CD):

• CD are short term deposit instrument issued by bank and financial institutions to raise large amount of money.

• This scheme was introduced by RBI in July 1989 to enable the banking system to mobilise bulk deposits from the market at a competitive rate of interest.

Lending of Money:

• Term Loans : Ordinary loans issued From 1 to 30 yrs