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Question

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.

The correct answer is

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.
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Similar Questions

  1. Identify the correct sequence of steps involved in the screen-based trading for buying and selling of securities on a stock exchange.

    1. A. Open a beneficial owner account with the depository participant.
    2. B. The trade has been executed within 24 hours and a contract note is issued.
    3. C. A registered broker is approached.
    4. D. Place an order with the broker.
    5. E. The settlement cycle is on T+2 day on a rolling settlement basis.

    Choose the correct answer from the options given below:

  2. 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

  1. The ______ segment of NSE provided an efficient and transparent platform for trading in equity, preference, debentures, exchange traded funds as well as State Government Securities.

    Which segment of NSE is being referred to in the statement?

  2. Which of the following is NOT true regarding role of NGOs (Non-Government Organizations) in consumer protection?

  3. A comprehensive plan for accomplishing an organisational objective is known as _______.

  4. "Simplifying procedures for imports and exports." The above statement is related to ______ concept of economic environment in India.

  5. It implies a desire to accomplish something difficult.

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