Q80.
With reference to 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.
Answer
C
Explanation
1. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. It can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue (short-term). Hence statement 1 is correct. 2. Certificate of Deposit (CD) is a