Ch.2 · Advantages and Limitations of Mutual Funds · medium
What is a Certificate of Deposit (CD) in the context of debt mutual fund investments?
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EXPLANATION
A Certificate of Deposit (CD) is a short-term money market instrument issued by scheduled commercial banks and eligible financial institutions. CDs have maturities ranging from 7 days to 1 year (for banks) and are held by liquid and money market mutual funds for short-term deployment.
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