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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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