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Consider the following statements regarding Certificates of Deposits (CD).
- CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it.
- CDs are issued to all persons resident in India.
- CDs are issued only in dematerialised form and held with a depository registered with SEBI.
- Banks can grant loans against Certificates of Deposits without the approval of RBI.
Which of the above statements is/are correct?
- a)1, 2
- b)1, 2, 3
- c)1, 2, 4
- d)1, 2, 3, 4
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding Certificates of Deposits (...
“Certificate of Deposit” or “CD” is a negotiable, unsecured money market instrument issued by a bank as a Usance Promissory Note against funds deposited at the bank for a maturity period upto one year;
Certificate of Deposits (CDs) may be issued by:
- Scheduled Commercial Banks;
- Regional Rural Banks; and
- Small Finance Banks.
CDs may be issued to all persons resident in India.
Primary issuance
CDs shall be issued only in dematerialised form and held with a depository registered with Securities and Exchange Board of India.
CDs shall be issued in minimum denomination of ₹5 lakh and in multiples of ₹5 lakh thereafter.
The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year.
Banks are not allowed to grant loans against CDs, unless specifically permitted by the Reserve Bank.
Primary issuance
CDs shall be issued only in dematerialised form and held with a depository registered with Securities and Exchange Board of India.
CDs shall be issued in minimum denomination of ₹5 lakh and in multiples of ₹5 lakh thereafter.
The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year.
Banks are not allowed to grant loans against CDs, unless specifically permitted by the Reserve Bank.
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Community Answer
Consider the following statements regarding Certificates of Deposits (...
Explanation:
The correct statements regarding Certificates of Deposits (CD) are as follows:
CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it.
- This statement is correct. A Certificate of Deposit (CD) is a financial instrument issued by banks and financial institutions for a specific period of time, usually ranging from a few months to a few years. It is a promissory note issued by the bank, promising to pay back the principal amount along with interest at the end of the specified period.
CDs are issued to all persons resident in India.
- This statement is correct. Certificates of Deposits (CDs) can be issued to all persons resident in India, including individuals, corporations, and other entities. It is not limited to a specific category of individuals or entities.
CDs are issued only in dematerialised form and held with a depository registered with SEBI.
- This statement is correct. Certificates of Deposits (CDs) are issued only in dematerialized form, which means they are held in electronic form rather than physical certificates. These dematerialized CDs are held with a depository registered with the Securities and Exchange Board of India (SEBI).
Banks can grant loans against Certificates of Deposits without the approval of RBI.
- This statement is incorrect. Banks are required to seek the approval of the Reserve Bank of India (RBI) before granting loans against Certificates of Deposits (CDs). The RBI regulates and supervises the banking sector in India and has certain guidelines and regulations in place for lending against CDs.
Therefore, the correct statements are:
1. CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it.
2. CDs are issued to all persons resident in India.
3. CDs are issued only in dematerialized form and held with a depository registered with SEBI.
Hence, the correct answer is option 'B' (1, 2, 3).
The correct statements regarding Certificates of Deposits (CD) are as follows:
CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it.
- This statement is correct. A Certificate of Deposit (CD) is a financial instrument issued by banks and financial institutions for a specific period of time, usually ranging from a few months to a few years. It is a promissory note issued by the bank, promising to pay back the principal amount along with interest at the end of the specified period.
CDs are issued to all persons resident in India.
- This statement is correct. Certificates of Deposits (CDs) can be issued to all persons resident in India, including individuals, corporations, and other entities. It is not limited to a specific category of individuals or entities.
CDs are issued only in dematerialised form and held with a depository registered with SEBI.
- This statement is correct. Certificates of Deposits (CDs) are issued only in dematerialized form, which means they are held in electronic form rather than physical certificates. These dematerialized CDs are held with a depository registered with the Securities and Exchange Board of India (SEBI).
Banks can grant loans against Certificates of Deposits without the approval of RBI.
- This statement is incorrect. Banks are required to seek the approval of the Reserve Bank of India (RBI) before granting loans against Certificates of Deposits (CDs). The RBI regulates and supervises the banking sector in India and has certain guidelines and regulations in place for lending against CDs.
Therefore, the correct statements are:
1. CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it.
2. CDs are issued to all persons resident in India.
3. CDs are issued only in dematerialized form and held with a depository registered with SEBI.
Hence, the correct answer is option 'B' (1, 2, 3).
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Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer?.
Solutions for Consider the following statements regarding Certificates of Deposits (CD). CD is a negotiable, unsecured money market instrument issued by a bank as a usance promissory note against funds deposited with it. CDs are issued to all persons resident in India. CDs are issued only in dematerialised form and held with a depository registered with SEBI. Banks can grant loans against Certificates of Deposits without the approval of RBI.Which of the above statements is/are correct?a)1, 2b)1, 2, 3c)1, 2, 4d)1, 2, 3, 4Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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