They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.

Related MCQs

• The liquidity status of certificate of deposit which is more negotiable is considered as
• Liquidity status of certificate of deposit which is more negotiable is considered as
• Business finance companies provide specialized forms of credit to businesses by making loans and purchasing accounts receivable at a discount; this provision of credit is called
• Which among the following was set up by RBI in 1988 jointly with public sector banks and all India Financial Institutions to develop the money market & provide liquidity to money market instruments as sequel to Vaghul Working Group recommendations?
• Which of the following actions might you expect lenders to take during periods of variable and unpredictable inflation?
• Corporations borrow for the short term by issuing:
• Which of the following statements is/are correct? 1. NBFCs does not hold a banking license. 2. NBFC can issue Demand Drafts like banks.
• ..................... is an unsecured short term promissory note issued by creditworthy companies?
• According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
• Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks, thereby reducing losses due to