Question : They are highly liquid and have assured yield and negligible risk of default due to soundness of RBI. Which money Market instrument is highlighted in the given statement?
Option 1: Commercial bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Treasury bill
Correct Answer: Treasury bill
Solution : Treasury bill is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government.They are highly liquid and have assured yield and negligible risk of default due to soundness of RBI.
Hence, option D is correct.
Question : Which money market instrument is highlighted in the given statement? Statement: These are highly liquid nature because the RBI is ever ready to buy them on discount.
Option 1: Treasury bill
Option 2: Call money
Option 3: Certificate of deposits
Option 4: Commercial bill
Question : Which of the following statement is correct? Statement 1:Treasury Bills have assured yield and negligible risk of default due to the soundness of RBI. Statement 2: Treasury Bills are considered negotiable instruments.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Question : Which money market instrument is highlighted in the given statement? Statement: If the seller needs money before the due date he can get it discounted from the bank.
Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Question : Which money market instrument is highlighted in the given statement? Statement: It is a negotiable instrument which can be transferred after a certain period by an endorsement.
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