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