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Match the LIST-I with LIST-II

LIST-I (Instruments of money market)LIST-II (Explanation)
A. Treasury BillI. Unsecured, negotiable, short term instruments in bearer form, issued by commercial banks and financial institutions.
B. Commercial PaperII. Short term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period used for bridge financing.
C. Call MoneyIII. An instrument of short term borrowing by the Government of India.
D. Certificate of DepositIV. Short term finance repayable on demand, with a maturity period of one day to fifteen days.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Treasury bills are short term borrowing instruments of the Government of India (III). Commercial paper is an unsecured promissory note used for bridge financing (II). Call money is repayable on demand with maturity of one to fifteen days (IV). Certificates of deposit are bearer instruments issued by banks and financial institutions (I). Hence A-III, B-II, C-IV, D-I.

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