Question

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

• A. Certificate of deposits
• B. Treasury Bills
• C. Commercial Papers
• D. Banker's Acceptances

Answer 1

Answer:

A. Certificate of deposits

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 and other eligible financial institutions issued for a period of time. 

• Certificate of Deposits introduced in India in 1989. 

• CDs issued as per directions of RBI

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