economics medium Fill in the Blank

Certificates of Deposit (CDs) are issued by ___ and financial institutions to raise bulk funds from the market.

  1. banks
  2. InvITs (or Infrastructure Investment Trusts)
  3. John Maynard Keynes
  4. IDA

Answer: banks

Unlike Commercial Papers issued by corporates, Certificates of Deposit are negotiable term deposits issued specifically by commercial banks and select financial institutions. They are issued at a discount to face value and are subject to the RBI's monetary policy directives.

Topic Financial Markets - Money Market
Exam Relevance Banking, SSC, Railway
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