pyq/2020/prelims/70

With reference of the Indian economy, consider the following statements:

1. ‘Commercial Paper’ is a short-term unsecured promissory note.

2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.

3. ‘Call Money’ is a short-term finance used for interbank transitions.

4. ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct?

(A) 1 and 2 only

(B) 4 only

(C) 1 and 3 only

(D) 2, 3 and 4 only