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Ch.1 · Savings vs Investment Avenues · easy

Which of the following money market instruments is issued ONLY by the Government of India?

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EXPLANATION

Treasury Bills (T-Bills) are short-term government securities issued by the Government of India through the RBI. They are available in 91-day, 182-day, and 364-day maturities and are considered risk-free instruments.

A.Commercial Paper

B.Certificate of Deposit

C.Treasury Bill [✓ Correct]

D.Non-Convertible Debenture

EXPLANATION

Treasury Bills (T-Bills) are short-term government securities issued by the Government of India through the RBI. They are available in 91-day, 182-day, and 364-day maturities and are considered risk-free instruments.

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