Describe two special features of Negotiable Instruments of Deposit?
1 ) Negotiable Instruments of Deposit (NID) are tradeable in the
secondary market and can be sold to raise cash in time of short
liquidity.
2 ) Holdings of Negotiable Instruments of Deposit (NID) reduces
bank's eligible liabilities base. Thus, reducing the amount
required to be place in the statutory reserved account.
Related Q&A：
What is an NID card？Well, let me tell you, an NID card is like a super important identification document. Oh my goodness, it's something that helps prove who you are! It usually has your personal details like your name, date of birth, maybe your photo and other crucial information. You know, it's used for all sorts of things like voting, opening bank accounts, getting government services and more. Without it, things can get really complicated. So, it's basically a key piece of identification that makes life a whole lot easier in many situations!
