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. 3. 'Call Money' is a short-term finance used for interbank transactions. 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 ?

Explicitly describes Certificates of Deposit as negotiable/unsecured money market instruments issued for a maturity period up to one year (ties CDs to money-market/short-term instruments).

A student can combine this with the standard distinction that 'long-term' normally means maturities >1 year to judge the statement.

States CDs are issued by banks to raise short-term funds and have maturity more than 7 days and less than 1 year (explicit short-term maturity range).

Use the <1 year maturity range as evidence against classifying CDs as long-term instruments (>1 year).

Defines monetary aggregates where 'short-term time deposits of residents (including and up to the contractual maturity of 1 year)' are grouped separately from long-term time deposits, implying the 1-year cutoff as a standard boundary.

Apply this 1-year boundary as the conventional rule to decide whether an instrument is short- or long-term.

Contains a previous-years question item that (incorrectly) labels 'Certificate of Deposit' as a long-term instrument — showing that such classification has been contested or mis-stated in exam material.

A student could treat this as a counterexample to check against authoritative definitions (like snippets 2 and 3) and thus be prompted to verify the correct maturity-based classification.

Defines Certificates of Deposit (CDs) as instruments issued by Scheduled Commercial Banks and selected financial institutions permitted by the RBI.

A student could infer that CDs are primarily bank instruments (not central bank instruments) and check standard lists of central-bank-issued instruments to see if CDs appear there.

Explains that commercial banks hold reserves partly in the form of financial instruments (bonds and treasury bills) issued by the RBI.

Use this pattern to distinguish instruments the RBI itself issues (bonds, T-bills) from those issued by commercial banks (like CDs) when comparing typical issuers.

States the RBI is the monetary authority that issues currency notes, indicating the RBI issues certain types of high‑level monetary instruments.

A student can use this to classify which monetary instruments are central‑bank products (currency) versus bank products, helping test whether CDs fit the central‑bank category.

Also emphasises RBI as the sole authority for issuing currency and coins, reinforcing the concept that RBI issues particular core monetary instruments.

Combine this with the CD definition to reason that because CDs are described as bank-issued short-term funds, they likely are not among the RBI's issued instruments.

Lists central bank functions (issue currency, control money supply, banker to banks), highlighting the specific role set of the RBI versus commercial banks.

A student can contrast these central‑bank functions with the role of commercial banks issuing short‑term debt (CDs) to assess who issues CDs.

Explicit definition: contrasts a regular (coupon) bond that 'pays interest' with a zero-coupon bond that 'does not pay interest' and returns face value at maturity.

A student could treat this definition as the baseline rule and check Indian bond market lists or RBI/govt. definitions to see if Indian zero-coupon issues follow the same payoff structure.

Explains the concept of coupon interest and how bond earnings are compared to other interest rates, highlighting the typical role of coupon payments in bonds.

Use this general rule (coupon bonds pay periodic interest) to infer that a bond labelled 'zero-coupon' deviates from the norm and therefore likely lacks periodic interest payments in India too.

Lists standard bond categories (fixed rate, floating rate, inflation-indexed) where interest/coupon behavior is explicitly described, implying there are normative classes of bonds distinguished by interest payment features.

A student could use these categories to classify zero-coupon bonds as a distinct class and then look for where Indian sources place zero-coupon bonds among these categories.

Contains a multiple-choice item that (contradictorily) states 'Zero-Coupon Bonds' are the interest-bearing short-term bonds issued by Scheduled Commercial Banks, showing that some exam/teaching material may present conflicting descriptions.

Treat this as an example of conflicting textbook/question phrasing; a student should cross-check authoritative Indian definitions (RBI, government notifications) to resolve the contradiction.

Another previous-question style item repeats the claim that zero-coupon bonds are interest-bearing short-term instruments, reinforcing that such claims appear in practice and thus require verification.

Use this repeated but contested claim to motivate checking specific Indian instruments (commercial paper, CDs, bank-issued instruments) to see if any labelled 'zero-coupon' actually pay periodic interest.

States that Treasury bills are zero-coupon securities and explicitly labels T-bills as short-term (maturity less than one year), linking a known zero-coupon instrument to short-term status.

A student could use this pattern to check whether other Indian zero-coupon instruments share T-bill-like maturities or whether 'zero-coupon' is used for both short- and long-term securities.

Gives the general definitional rule for zero-coupon bonds (no periodic interest, face value received at maturity), which distinguishes them by payment structure rather than maturity.

Combine this definition with knowledge of specific Indian instruments' maturities (e.g., look up maturities of listed zero-coupon issues) to see if zero-coupon form implies short-term in practice.

Contains an exam-style statement asserting that 'Zero-Coupon Bonds' are interest-bearing short-term bonds issued by Scheduled Commercial Banks — an example of how some sources/questions classify zero-coupon bonds as short-term (though the phrase 'interest-bearing' conflicts with definition).

A student could treat this as an indicator of common classification in exam literature and verify by comparing it with authoritative definitions/maturity schedules of Indian zero-coupon issues.

Another previous-years-question item repeating the claim that 'Zero coupon Bonds' are interest-bearing short-term bonds issued to corporations, showing recurrence of this characterization in study materials.

Use this repeated characterization as a prompt to cross-check curricula claims against instrument examples (e.g., T-bills vs other zero-coupon bonds) to resolve the inconsistency.

Contains an explicit textbook item stating 'Zero coupon Bonds' are interest-bearing short-term bonds issued by the Scheduled Commercial Banks to corporations (example/question format).

A student could treat this as a claimed example and check other authoritative definitions or market practice (e.g., bond definitions, issuer lists) to verify consistency.

Another textbook snippet repeats the same claim (zero-coupon bonds issued by Scheduled Commercial Banks to corporations) in a multiple-choice context, showing the claim appears in exam-style material.

Use this repetition to suspect the claim is a common exam assertion and compare with precise definitions of zero-coupon bonds from primary sources or regulations.

Defines zero-coupon bonds as instruments that do not pay periodic interest and pay face value at maturity — a core definitional rule about zero-coupon bonds.

Combine this definition with the claim in [1]/[2] to detect a potential contradiction (interest-bearing vs. non-interest-paying) and investigate which description matches market/legal definitions in India.

Describes that negotiable/tradable money market instruments like Certificates of Deposit are issued mostly by Scheduled Commercial Banks, giving a pattern that SCBs commonly issue short-term instruments to market participants.

Use this pattern to assess plausibility that SCBs could issue short-term instruments to corporations, then check whether zero-coupon bonds are classified among such bank-issued instruments.

Explains what constitutes a scheduled commercial bank (inclusion in RBI schedule, corporate form, minimum paid-up capital), providing a clear definition of the alleged issuer category.

A student could use this to identify which institutions count as potential issuers and then cross-check issuer lists/regulatory permissions for issuing zero-coupon bonds.