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      Question

      Which of the following instruments in the Indian money

      market is a negotiable, unsecured instrument issued by banks and financial institutions to raise short-term funds?
      A Commercial Paper Correct Answer Incorrect Answer
      B Certificate of Deposit Correct Answer Incorrect Answer
      C Treasury Bills Correct Answer Incorrect Answer
      D Repurchase Agreements (Repos) Correct Answer Incorrect Answer
      E Collateralized Borrowing and Lending Obligation (CBLO) Correct Answer Incorrect Answer

      Solution

      A Certificate of Deposit (CD) is a negotiable, unsecured money market instrument issued by banks and financial institutions to raise short-term funds. It typically has a maturity period of up to one year.

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