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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

 


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Treasury bill


Solution : A treasury bill is an instrument of short term borrowings issued by the Reserve Bank of India on behalf of Indian government.They are also known as zero coupon bonds.

Hence, option A is correct.

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