Question

Write short notes Certificate of deposit.

Answer 1

certificate of deposit is an unsecured promissory note negotiable short term investment issued by the commercial banks in the form of a certificate authorising the bear to receive interest along with the face value .

certificate of deposits can be issued by individuals, NRI ,corporations and companies . they are issued during the period of high liquidity when the percentage of deposits are low compared to demand for loans . the certificates are available for the term of 3 months to 5 years . the returned certificate of deposits are higher than the treasury bills as the rate of risk is high .....

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