ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Certificates of deposit (CD) are unsecured, negotiable, short-term instruments in bearer form. 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. Was this answer helpful?

Detailed explanation-2: -Liquidity status of certificate of deposit which is more negotiable is considered as more liquid. Liquid certificates of deposit are a type of certificate of deposit (CD) that allow investors to make withdrawals without incurring a penalty.

Detailed explanation-3: -Certificate of Deposit or CD is a fixed-income financial instrument governed under the Reserve Bank and India (RBI) issued in a dematerialized form. The amount at payout is assured from the beginning. A CD can be issued by any All-India Financial Institution or Scheduled Commercial Bank.

Detailed explanation-4: -Certificates of deposit are short term instruments issued by commercial banks and financial institutions to the individuals, corporations and companies. They are unsecured and negotiable.

Detailed explanation-5: -A Certificate of Deposit (CD) is a money market instrument which is issued in a dematerialised form against funds deposited in a bank for a specific period. The Reserve Bank of India (RBI) issues guidelines for Certificate of Deposit from time to time.