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.

(a) Call money

(b) Commercial bill

(c) Commercial papers

(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.

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