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    Question

    Treasury Bills (T-Bills)

    are:
    A Long-term debt instruments Correct Answer Incorrect Answer
    B Equity market instruments Correct Answer Incorrect Answer
    C Money market instruments issued by Government Correct Answer Incorrect Answer
    D Issued by commercial banks only Correct Answer Incorrect Answer
    E Foreign exchange instruments Correct Answer Incorrect Answer

    Solution

    T-Bills are short-term government securities (91, 182, 364 days) issued at discount, redeemed at par. They are risk-free, highly liquid, and used by government for short-term borrowing. Part of the money market (not capital market).

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