Match the LIST-I with LIST-II
LIST-I (Money Market Instrument) LIST-II (Features) A. Certificate of Deposit I. Bill of Exchange used to finance the working capital requirements of business firms. B. Commercial Paper II. Short term unsecured, negotiable instruments issued by Commercial Banks and Development Finance Institutions. C. Commercial Bill III. Short term finance repayable on demand, used for inter bank transactions D. Call Money IV. Short term, unsecured promissory note, negotiable and transferable by endorsement, used for bridge financing.
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
| LIST-I (Money Market Instrument) | LIST-II (Features) |
|---|---|
| A. Certificate of Deposit | I. Bill of Exchange used to finance the working capital requirements of business firms. |
| B. Commercial Paper | II. Short term unsecured, negotiable instruments issued by Commercial Banks and Development Finance Institutions. |
| C. Commercial Bill | III. Short term finance repayable on demand, used for inter bank transactions |
| D. Call Money | IV. Short term, unsecured promissory note, negotiable and transferable by endorsement, used for bridge financing. |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 1
Certificates of Deposit are unsecured negotiable instruments issued by commercial banks and development finance institutions (II). Commercial Paper is a short-term unsecured promissory note used for bridge financing (IV). A Commercial Bill is a bill of exchange used to finance working capital (I). Call Money is short-term finance repayable on demand, used for inter-bank transactions (III). Hence A-II, B-IV, C-I, D-III.
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