Question

Match the following financial terms with their most suitable meaning/synonym:

List-I	List-II (Adverbs)
(A) Perpetuity	(I) Deposit with purpose
(B) Sinking Fund	(II) Asset value reduction
(C) Bond	(III) Forever lasting annuity
(D) Depreciation	(IV) Debt instrument

Choose the correct answer from the options given below :

• A. (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
• B. (A)-(I), (B)-(II), (C)-(IV), (D)-(III)
• C. (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
• D. (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Answer 1

The Correct Option is C

To solve this problem, we need to match the financial terms in List-I with their correct meanings from List-II. Let's analyze each term: 

1. Perpetuity refers to an annuity or a stream of cash flows that continues indefinitely. This corresponds to forever lasting annuity (III).
2. Sinking Fund is a fund established to set aside money over time to repay debt. This is a planned savings and investment for a specific purpose, thus matching with deposit with purpose (I).
3. Bond is a debt instrument, typically used by entities to raise capital. Hence, it aligns with debt instrument (IV).
4. Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, thus matching asset value reduction (II).

Therefore, the correct matching order is (A)-(III), (B)-(I), (C)-(IV), (D)-(II).

Answer 2

(A) Perpetuity: A financial instrument or annuity that lasts forever.
(B) Sinking Fund: A fund set aside for a specific purpose, such as repaying debt. Match:
(I) Deposit with purpose.
(C) Bond: A debt instrument issued by entities to raise capital. Match: (IV) Debt instrument.
(D) Depreciation: The reduction in the value of an asset over time.
Final Matching:
(A) Perpetuity → (III), (B) Sinking Fund → (I), (C) Bond → (IV), (D) Depreciation → (II).