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    Question

    With reference to the Indian economy, which of the following statements is/are correct?

    I.           Commercial Paper’ is a short-term unsecured promissory note.

    II.          ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.

    III.       ‘Call Money’ is a short-term finance used for interbank transactions.

    IV.       ‘Zero-Coupon Bonds’ are the interest-bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

    A I, II and IV only Correct Answer Incorrect Answer
    B I and III only Correct Answer Incorrect Answer
    C II, III and IV only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    Explanation: “Certificate of Deposit” and “Zero Coupon Bonds” are long term instruments.

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