GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not a ‘Money Market Instrument?
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Treasury bills
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Commercial paper
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Certificate of Deposit
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Equity shares
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Explanation:
Detailed explanation-1: -Equity shares are long-term instruments and hence, cannot be a money market instrument.
Detailed explanation-2: -Interbank loans (loans between banks), money market mutual funds, commercial paper, Treasury bills and securities lending and repurchase agreements, are all examples of money markets instruments.
Detailed explanation-3: -Commercial paper, Treasury bills, and banker’s acceptances are debt instruments with maturities of 1 year or less and are therefore money market instruments. A newly issued Treasury note would have a maturity of 2 to 10 years and therefore would not be a money market instrument.
There is 1 question to complete.