ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A certificate of deposit requires a minimum investment of ₹1 lakh and thereafter permits multiples of it. A commercial paper, on the other hand, is issued for investments of at least ₹5 lakhs and in multiples of ₹5 lakh, thereafter.

Detailed explanation-2: -Eligibility for Certificate of Deposit: Certificates of Deposit are issued by scheduled commercial banks and select financial institutions in India as allowed by RBI within a limit. Certificates of Deposits are issued to individuals, companies, corporations and funds among others.

Detailed explanation-3: -You can put up to $250, 000 in CDs and will never lose that money as long as your account is with a bank insured by FDIC or a credit union insured by NCUA.

Detailed explanation-4: -Eligibility Criteria: Certificates of Deposits are issued to individuals, corporations, companies, and funds, among others. Certificate of Deposits could also be issued to NRIs but on a non-repatriable basis only. It is crucial to note that banks and financial institutions can’t provide loans against CDs.