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    Question

    Consider the following about financial market instruments:

    1. Commercial Papers are unsecured, short-term instruments issued by corporations to meet immediate capital needs.

    2. Treasury Bills are short-term government securities issued at a discount and redeemed at face value.

    3. Corporate Bonds are long-term debt instruments typically with a fixed interest rate.

    4. Certificates of Deposit are negotiable instruments issued by banks and select financial institutions for fixed short-term durations.

    Which of the above statements is correct? 

    A 1 and 2 only Correct Answer Incorrect Answer
    B 1, 2, and 3 only Correct Answer Incorrect Answer
    C 2 and 4 only Correct Answer Incorrect Answer
    D 1, 2, and 4 only Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    All statements given correctly describe various financial market instruments.

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