Question

Which group contains examples of the “near money” dealt in by the money market?

Options

• RBI, commercial banks and NBFCs

• State governments, big companies and mutual funds

• Trade bills, government securities and promissory notes

• Bank loans and capital market borrowings

Answer 1

“Near money” refers to short-term instruments such as trade bills, government securities and promissory notes. These are instruments dealt in by the money market, not its participants.