Question

____ are issued with a face value of Rs 1 lakh and in multiples of Rs 1 lakh thereof​

Answer 1

Answer:

1 lakh

Explanation:

Minimum amount of a CD should be Rs. 1 lakh i.e., the minimum deposit that can be accepted from a single subscriber should not be less than Rs 1 lakh. CD issued will be in multiples of Rs 1 lakh.

Answer 2

Answer:

A Certificate Deposit or CD is a statutory monetary instrument administered under the Reserve Bank of India issued in a derecognised way where the amount on withdrawal is guaranteed from the outset.

Explanation:

The CD can be issued by any All-India Financial Institution or Organized Commercial Bank. They are issued at a discount provided for a reasonable amount. As a fixed deposit (FD), the purpose of the CD is to state in writing that you have deposited money in the bank for a fixed period of time and that bank will pay you interest on it based on the amount and timing of your deposit.

Therefore, we can say that CD are issued with a face value of Rs 1 lakh and in multiples of Rs 1 lakh thereof​.