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 ?

Statements 1 and 3 are correct because Commercial Paper is an unsecured short-term debt instrument issued by corporates, and Call Money is used for very short-term (usually overnight) interbank lending to manage liquidity. Statement 2 is a common pitfall but is incorrect because Certificates of Deposit are short-term instruments issued by banks and financial institutions, not the RBI. The core concept tested is the specific classification, maturity periods, and issuing authorities of various Money Market instruments in the Indian economy.