They can be issued to individuals, corporations, and companies during periods of tight liquidity when the deposit growth of banks is slow, but the demand for credit is high.

Call money

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Commercial bill

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Commercial papers

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Certificate of deposit

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Certificate of deposit

Answer (d) Certificate of deposit
Explanation: A certificate of deposit (CD) is an item presented by banks, credit associations and unions that gives an interest rate premium in return for the client consenting to leave a single amount deposit untouched for a foreordained timeframe.

Suggest Corrections