Match List I with List II.
|
List - I |
List - II |
|
(A) Call Money |
(I) Issued by large and creditworthy companies |
|
(B) Commercial paper |
(II) Available for minimum amount of ₹25,000 |
|
(C) Treasury Bill |
(III) Self liquidating Instrument |
|
(D) Commercial Bill |
(IV) Inter-bank transactions |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4)- (A)-(IV), (B)-(I), (C)-(II), (D)-(III).
|
List - I |
List - II |
|
(A) Call Money |
(IV) Inter-bank transactions |
|
(B) Commercial paper |
(I) Issued by large and creditworthy companies |
|
(C) Treasury Bill |
(II) Available for minimum amount of ₹25,000 |
|
(D) Commercial Bill |
(III) Self liquidating Instrument |
* Call Money: Call money is short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions. Call money is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.
* Commercial Paper: Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates.
* Treasury Bill: A Treasury bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. Treasury bills are available for a minimum amount of Rs 25,000 and in multiples thereof.
* Commercial Bill: A commercial bill is a bill of exchange used to finance the working capital requirements of business firms. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.