What is the typical range of maturities for Negotiable Certificates of Deposit?

Negotiable Certificates of Deposit (NCDs) are debt instruments issued by banks, and they function as a time deposit, typically with fixed interest rates and specified maturity dates. The nature of NCDs allows them to be transferable, meaning they can be sold in the secondary market before maturity.

The typical range of maturities for NCDs is generally between 2 weeks to 1 year, aligning with option B. This timeframe makes NCDs an attractive investment for both individual and institutional investors seeking relatively short-term investment options that typically offer better interest rates than conventional savings accounts.

The maturity range for Negotiable Certificates of Deposit is strategically designed to meet the needs of investors looking for liquidity and higher returns on their investments over shorter periods. The 2-week to 1-year maturity range allows for flexibility and a balance between a short investment horizon and the opportunity to earn a competitive yield compared to other short-term instruments.

In contrast, other options extend the maturity range too far beyond what's customary for NCDs, making them less representative of the market standards for these financial instruments.