It is a short-term negotiable instrument issued by the Reserve Bank of India on behalf of the Government, maturing in less than one year. Identify the money market instrument mentioned above.
Treasury Bill
The correct answer is Treasury Bill because:
- It is a short-term financial instrument issued by the government to raise funds for temporary needs.
- It has a maturity period of less than one year and is considered a risk-free investment.
- Unlike commercial papers and certificates of deposit, which are issued by corporations and banks, treasury bills are government-backed.
Similar Questions
Identify the correct sequence of steps involved in the screen-based trading for buying and selling of securities on a stock exchange.
- A. Open a beneficial owner account with the depository participant.
- B. The trade has been executed within 24 hours and a contract note is issued.
- C. A registered broker is approached.
- D. Place an order with the broker.
- E. The settlement cycle is on T+2 day on a rolling settlement basis.
Choose the correct answer from the options given below:
Match List-I with List-II:
List-I List-II (A) Pay in day (I) When the shares are bought or sold, it is communicated to the broker terminal and the order is executed electronically (B) Contract note (II) The day when the exchange will deliver the share or make payment to another broker (C) Pay out day (III) The day when the broker shall make payment or delivery of share to the exchange (D) Trade confirmation slip (IV) The document containing details of shares bought/sold, price of share, date, and time of deal Choose the correct answer from the options given below:
Important Questions from Financial Market
Identify the correct sequence of steps involved in the screen-based trading for buying and selling of securities on a stock exchange.
- A. Open a beneficial owner account with the depository participant.
- B. The trade has been executed within 24 hours and a contract note is issued.
- C. A registered broker is approached.
- D. Place an order with the broker.
- E. The settlement cycle is on T+2 day on a rolling settlement basis.
Choose the correct answer from the options given below:
Match List-I with List-II:
List-I List-II (A) Pay in day (I) When the shares are bought or sold, it is communicated to the broker terminal and the order is executed electronically (B) Contract note (II) The day when the exchange will deliver the share or make payment to another broker (C) Pay out day (III) The day when the broker shall make payment or delivery of share to the exchange (D) Trade confirmation slip (IV) The document containing details of shares bought/sold, price of share, date, and time of deal Choose the correct answer from the options given below:
Identify the function performed by Financial Market from the following statement: "Holders of assets can readily sell their financial assets through the mechanism of the financial market."
Identify the method of floatation in Primary Market wherein a company sells securities en bloc at an agreed price to a broker.
Identify the correct sequence of trading and settlement procedure:
(A) The investor has to sign a broker client agreement.
(B) The investor has to open a 'Demat' Account.
(C) An order confirmation slip is issued to the investor by the broker.
(D) The broker will then go online and connect to the main stock exchange.
Choose the correct answer from the options given below:
