Question : Which of the following statement is incorrect?
Option 1: Certificate of deposit issued against the deposits kept by companies and institutions.
Option 2: Commercial bill is short term borrowing instrument issued by RBI.
Option 3: Call money is a short term finance generally used by banks to maintain cash reserve ratio
Option 4: None of the above
Correct Answer: Commercial bill is short term borrowing instrument issued by RBI.
Solution : Treasury bill is the instrument of short term borrowing issued by RBI. Commercial bill is a short term instrument used to finance working capital requirements of the business.
Hence, option B is correct.
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?
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
Question : Which money market instrument is highlighted in the given statement? Statement: It is issued by the schedule commercial banks and The Financial institutions like IDBI IFSC ICICI and exim Bank.
Option 2: Call money
Option 3: Certificate of deposits
Question : Which money market instrument is highlighted in the given statement? Statement: They are generally used by commercial banks to maintain minimum cash balance with Reserve Bank of India.
Option 4: All of the above
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