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

The objective is to pair financial terms from List-I with their accurate definitions in List-II. Below is an examination of each term:

1. Perpetuity describes an annuity or a sequence of cash flows that extends without end. This aligns with forever lasting annuity (III).
2. Sinking Fund denotes a fund established to accumulate money over time for debt repayment. This represents planned savings and investment for a defined objective, thus corresponding to deposit with purpose (I).
3. Bond signifies a debt instrument, commonly utilized by organizations to acquire capital. Consequently, it matches with debt instrument (IV).
4. Depreciation is the accounting practice of expensing the cost of a tangible asset over its service life, thereby aligning with asset value reduction (II).

Accordingly, the correct sequence of pairings is (A)-(III), (B)-(I), (C)-(IV), (D)-(II).