Match List-I with List-II
List-I (Money Market Instruments) List-II (Associated keywords) (A) Treasury Bill (I) An instrument used by the companies for bridge financing (B) Commercial Paper (II) Zero coupon bond (C) Call Money (III) Used for inter-bank transactions to maintain cash reserve ratio (D) Certificate of Deposit (IV) Used during periods of tight liquidity
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I (Money Market Instruments) | List-II (Associated keywords) |
|---|---|
| (A) Treasury Bill | (I) An instrument used by the companies for bridge financing |
| (B) Commercial Paper | (II) Zero coupon bond |
| (C) Call Money | (III) Used for inter-bank transactions to maintain cash reserve ratio |
| (D) Certificate of Deposit | (IV) Used during periods of tight liquidity |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 2
Treasury bills are issued at a discount and repaid at par, making them zero coupon bonds (II). Commercial paper is used by companies for bridge financing (I). Call money is used for inter-bank transactions to maintain the cash reserve ratio (III). Certificates of deposit are issued during periods of tight liquidity (IV). Hence (A)-(II), (B)-(I), (C)-(III), (D)-(IV).
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