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A Certificate of Deposit is a financial instrument used by
a company to raise loan
a bank to raise loan
debt instruments issued by banks and other financial institutions to the investers
none of these
3rd option is correct.
A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment.
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