alleryUnsecured, negotiable, short-term bearer instruments issued by commercial banks are:
ATreasury bills of state
BCommercial bills of trade
CCall money instruments
DCertificates of deposit
Answer & Solution
Correct answer: D. Certificates of deposit
1. They are issued when deposit growth is slow.
2. They mobilise large amounts for short periods.
3. These are certificates of deposit.
_Source: syllabus Business Studies Part II, Chapter 10, Financial Markets._
Keep practising Financial Markets
Browse all Financial Markets questions for AP Intermediate 2nd Year, or explore more Business Studies topics.
Related questions
Already-issued securities are bought and sold between investors in the:New securities are sold to the public for the first time in the:Bonds issued by states, cities and counties are called:The amount borrowed by the issuer of a bond, also called par value, is the:Payments made to stockholders out of a corporation's profits are:An equity security whose dividend is fixed when it is issued is:A security representing an ownership interest in a corporation is:The principle that a higher risk should bring the chance of a greater return is the: