Discussion
What is the full form of "STD"?
Answer: A
Correct answer: Short Term Deposit
A short term deposit is a term deposit placed for a brief period, conventionally up to a year, as against the medium and long term deposits that run beyond it.
The classification matters for a bank's asset-liability management, since the maturity profile of its deposits determines how much it can safely lend long. It also affects pricing: short deposits usually carry lower rates, though an inverted curve can reverse that. The same three letters mean subscriber trunk dialling in telephony, which is the trap the distractors play on.
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