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.
Correct Answer: Both are true
Solution : Treasury bill means the short term instrument which the central government issues to the financial institution of the general public in order to meet its short term financial needs it's maturity period cannot be more than a year.1:Treasury Bills have assured yield and negligible risk of default due to the soundness of RBI.
Hence, option A is correct.
Question : Statement 1: Treasury bills are short-term debt instruments issued by the government.
Statement 2: Treasury bills are long-term loans provided by commercial banks.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
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 of the following statement is correct? Statement 1:Instruments of the money market are close substitutes for money. Statement 2: Discount Finance House of India provides a ready market for money market instruments.
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