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.