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
Correct Answer: Treasury bill
Solution : Treasury bill means the short term instrument which the central government issues to the Financial institutions for the general public in order to meet the short term financial needs. Treasury bills are of highly liquid nature because the RBI is ever ready to buy them on discount.
Hence option A is correct.
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
Question : Which money market instrument is highlighted in the given statement? Statement: It is used to finish the credit sales.
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.
Question : It is used for bridge financing. Which money market instrument is highlighted in the given statement?
Question : Which money market instrument is highlighted in the given statement? Statement: The changes in CRR affects the amount of funds available to be given as loans by commercial banks.
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