Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

Match the Following:

Column I Column II
1. Debentures A. The reward for lending money to borrower.
2. Collateral Security B. The instrument which is issued to the public as a contract of repayment of money borrowed from them. 
3. Interest on Debenture C. A system of subordinate (secondary) protection which is often required by the bank and implied to assure a debtors conduct on the debt obligation.

 

Options:

1-A, 2-B, 3-C

1-C, 2-B, 3-A

1-B, 2-C, 3-A

1-A, 2-C, 3-B

Correct Answer:

1-B, 2-C, 3-A

Explanation:
Column I Column II
1. Debentures A. The instrument which is issued to the public as a contract of repayment of money borrowed from them.
2. Collateral Security B. A system of subordinate (secondary) protection which is often required by the bank and implied to assure a debtors conduct on the debt obligation.
3. Interest on Debenture C. The reward for lending money to borrower.