[amp_mcq option1=”a-1, b-2, c-4, d-3″ option2=”a-3, b-1, c-2, d-4″ option3=”a-1, b-3, c-4, d-2″ option4=”a-4, b-3, c-2, d-1″ correct=”option3″]
The correct answer is: C. a-1, b-3, c-4, d-2
- Interbank call market is a market where banks lend money to each other on a short-term basis. It is a money market, as it deals with short-term loans.
- Commercial bills are short-term negotiable instruments that are issued by businesses to finance their working capital needs. They are a type of promissory note, as they are a promise to pay a certain amount of money on a certain date.
- Commercial paper market is a market where businesses issue short-term debt securities to raise money. These securities are typically unsecured, and have a maturity of less than 270 days.
- Treasury bills are short-term debt securities issued by the government. They are considered to be very safe investments, and are often used as a benchmark for other short-term investments.
Here is a brief explanation of each option:
- Option A: This option is incorrect because it matches commercial bills with the money market. Commercial bills are a type of promissory note, and promissory notes are not typically traded in the money market.
- Option B: This option is incorrect because it matches the interbank call market with the commercial paper market. The interbank call market is a market where banks lend money to each other, while the commercial paper market is a market where businesses issue short-term debt securities.
- Option C: This option is correct because it matches each item in List-I with the correct item in List-II.
- Option D: This option is incorrect because it matches treasury bills with the commercial paper market. Treasury bills are a type of government security, while commercial paper is a type of corporate security.