CBSE · Class 11 · Business Studies · Sources of Business FinanceWhich financial instrument represents a certificate of deposit issued by a bank?
Step-by-Step Solution
A Certificate of Deposit (CD) is an unsecured, negotiable instrument issued by commercial banks against term deposits.
Detailed Options Breakdown
Option : Commercial Paper
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 1: Certificate of Deposit (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Trade Credit
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 3: Equity Share
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
💡 Study Guide: This question tests core syllabus concepts from Sources of Business Finance. For formulas, key summaries, and mock exam reference guides, read the full Sources of Business Finance Revision Notes.