Financial Markets · Class 12 · CBSE · Commerce Business Studies
Which of the following is a money market instrument issued by the Government of India to meet its short-term financial requirements?
Practice question from Financial Markets (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
easy · MCQ · Q-0E18D1
Which of the following is a money market instrument issued by the Government of India to meet its short-term financial requirements?
- A.Equity shares
- B.Treasury billsCorrect answer
- C.Preference shares
- D.Debentures with a 15-year maturity
Solution
Treasury bills are short-term money market instruments issued by the Government of India, generally with maturities of less than one year.
More from Financial Markets
- A company offers its shares to the public for the first time to raise fresh capital. In which market does this transaction take place?
- Which action best represents the regulatory function of the Securities and Exchange Board of India (SEBI)?
- Differentiate between the primary market and the secondary market on the basis of the nature of transactions and the flow of funds.
- A large and creditworthy company wants to raise short-term funds through an unsecured promissory note issued directly to investors. Which m…
Practise more Business Studies
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed