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Question

Mathematics Question on Financial Mathematics

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

List-IList-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

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

Explanation

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).