With reference to the Indian economy, consider the following statements :
1. ‘Commercial Paper’ is a short-term unsecured promissory note.
2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
3. ‘Call Money’ is a short-term finance used for interbank transactions.
4. ‘Zero-Coupon Bonds’ are the interest bearing short term bonds issued by the Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct
Certificate of deposit is a short term debt instrument. 2 is wrong since it says ‘long term instrument’. This eliminates the options a and d. Call money is a short-term finance for interbank transactions, so the option 3 is correct.
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