Question
Mathematics Question on Financial Mathematics
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)-(I), (B)-(II), (C)-(III), (D)-(IV)
(A)-(I), (B)-(II), (C)-(IV), (D)-(III)
(A)-(III), (B)-(I), (C)-(IV), (D)-(II)
(A)-(III), (B)-(IV), (C)-(I), (D)-(II)
(A)-(III), (B)-(I), (C)-(IV), (D)-(II)
Solution
(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).