Following are the features of a deposit that a bank accepts from a Corporate house. The features of the deposit are

Question

Question: Following are the features of a deposit that a bank accepts from a Corporate house. The features of the deposit are:

• accepted at a discounted value
• stamp duty is borne by the bank
• issued as usance promissory note
• TDS is not applicable

Options:

1.  Commercial paper letter commercial note
2.  Certificate of deposit
3.  Flexi deposit
4.  Caution deposit

Answer 1

2. Certificate of deposit

The features of a deposit that a bank accepts from a Corporate house. The features of the deposit are:

• Accepted at a discounted value
• Stamp duty is borne by the bank
• Issued as usance promissory note
• TDS is not applicable
• Certificate of deposit