What is Certificate of deposits(CDs) Definition And Meaning
The CDs are another important instrument of money market. They are issued by banks in multiples of Rs. 25 lakhs subject to a minimum amount of Rs. 1 crore. The maturity is between 3 months and one year.
They are issued at a discount to the face value and the discount rate is freely determined according to market conditions. CDs are freely transferable after 45 days from the date of issue.
The CDs are another important instrument of money market. They are issued by banks in multiples of Rs. 25 lakhs subject to a minimum amount of Rs. 1 crore. The maturity is between 3 months and one year.
They are issued at a discount to the face value and the discount rate is freely determined according to market conditions. CDs are freely transferable after 45 days from the date of issue.
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What is Certificate of deposits(CDs) Definition And Meaning
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