Question
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 correctSolution
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.
Select the option that is related to the third term in the same way as the second term is related to the first term.
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