New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is not a money market

    instrument? 
    A Inter Bank Participation Certificates Correct Answer Incorrect Answer
    B Call/ Notice/ Term Money Correct Answer Incorrect Answer
    C Treasury Bills Correct Answer Incorrect Answer
    D Bill Rediscounting Correct Answer Incorrect Answer
    E All are money market instrument Correct Answer Incorrect Answer

    Solution

    Term "Money Market" refers to the market for short-term deployment of funds. Money market instruments have a maturity period of less than one year. The most active part of the money market is the market for overnight call and term money between banks and institutions and repo transactions. Following instruments are money market instruments: Certificate of Deposit (CD) Commercial Paper (CP) Inter Bank Participation Certificates Inter Bank term Money Treasury Bills Bill Rediscounting Call/ Notice/ Term Money

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