(i) Certificate of Deposits are short-term deposit instruments issued by banks and financial institutions to raise large sums of money.
(ii) Certificate of Deposits are issued in the form of usance promissory notes.
(iii) They are easily convertible in nature and are in marketable form having particular face value and maturity.
(iv) The Certificate of Deposit is transferable from one party to another.
(v) Due to their negotiable feature, they are also known as negotiable certificate of deposit.

Issuers : The Issuers of Certificate of Deposits are Commercial Banks, Financial Institutions., etc.
Subscribers : Certificate of Deposits are available for subscription by Individuals, Corporations, Trusts, Associations and NRIs.

(i) Bills that are drawn and payable in India on a person who is resident in India are called inland bills.
(ii) Bills that are drawn outside India and are payable either in India or outside India are called foreign bills.

(i) Bills that are accompanied by documents of title to goods are called documentary bills.
(ii) Clean bills are drawn without accompanying any document.
(iii) Example: Railway Receipt and Lorry Receipt.

A well-developed money market serves the following objectives :
(i) Providing an equilibrium mechanism for ironing out short-term surplus and deficits.
(ii) Providing a focal point for central bank intervention for influencing liquidity in the company.
(iii) Providing access in uses to users of short term money to meet their requirements at a reasonable price.