Passlane Sign in

Ch.1 · Comparing Financial Products · medium

What is a Certificate of Deposit (CD)?

0% of students got this wrong

EXPLANATION

A Certificate of Deposit is a negotiable, money market instrument issued by scheduled commercial banks and All India Financial Institutions for maturities ranging from 7 days to 1 year (banks) or 1–3 years (FIs).

A.A savings scheme offered by post offices for retail investors

B.A negotiable money market instrument issued by scheduled commercial banks for a fixed term [✓ Correct]

C.A long-term bond issued by development finance institutions

D.A government-backed instrument for senior citizen savings

EXPLANATION

A Certificate of Deposit is a negotiable, money market instrument issued by scheduled commercial banks and All India Financial Institutions for maturities ranging from 7 days to 1 year (banks) or 1–3 years (FIs).

Practising Chapter 1 one question at a time?

Try the full chapter — 50 questions, tracked score, weak area breakdown.

Practice Chapter 1 →Take the mock test →