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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
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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.
RELATED QUESTIONS
Write a word or a term or a phrase which can substitute the following statement.
A market which provides long term funds
Write a word or a term or a phrase which can substitute the following statement.
A money market instrument used by banks when one bank faces a temporary shortage of cash.
Money market is the market for the long term funds.
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Capital market is the market for the long term funds.
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Commercial paper is a secured promissory note.
State whether the following statement is true or false
Treasury bills are issued by commercial banks.
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Funds borrowed and lent in money market are for ___________ term.
Complete the sentence.
Unsecured negotiable promissory notes issued by a commercial bank is called as _______.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Money market | 1) ____________ |
| b) Zero risk instrument | 2) _____________ |
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(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Answer in one sentence.
What is Trade Bill?
Correct the underlined word/s and rewrite the following sentence.
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Money market
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Call money market
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Treasury bills
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Commercial bills
Answer in brief.
State any four features of money market
Answer the following question
State the instruments in money market.
