Certificates of Deposit (CDs) are issued by ___ and financial institutions to raise bulk funds from the market.
- banks
- InvITs (or Infrastructure Investment Trusts)
- John Maynard Keynes
- 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.