English

Central government is a borrower in the money market through the issue of ______. - Secretarial Practice

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Question

Central government is a borrower in the money market through the issue of ______.

Options

  • commercial papers

  • trade bills

  • treasury bills

MCQ
Fill in the Blanks
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Solution

Central government is a borrower in the money market through the issue of treasury bills.

Explanation:

Treasury Bills are short term securities issued by Reserve Bank of India on behalf of the Central Government of India to meet the government's short term funds requirement. Treasury Bills have three maturity periods - 91 days, 182 days and 364 days. These bills are sold to banks and individuals, firms, institutions, etc. These bills are negotiable instruments and are freely transferable.

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Types of Financial Market
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Chapter 11: Financial Market - Exercises [Page 167]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 11 Financial Market
Exercises | Q 1 A) 4. | Page 167

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