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      Question

      Which of the following is not a typical feature of Money

      Market instruments in India?
      A Short-term maturity Correct Answer Incorrect Answer
      B High liquidity Correct Answer Incorrect Answer
      C Issued by government or large corporates Correct Answer Incorrect Answer
      D Interest-bearing instruments only Correct Answer Incorrect Answer
      E Low credit risk Correct Answer Incorrect Answer

      Solution

      Not all money market instruments are interest-bearing; Treasury Bills, for example, are zero-coupon and issued at a discount.

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