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      Question

      Treasury Bills (T-Bills) and Government Securities

      (G-Secs) are debt instruments issued by the RBI on behalf of the government. In which financial markets are they primarily traded?
      A T-Bills in Capital Market; G-Secs in Money Market Correct Answer Incorrect Answer
      B T-Bills in Money Market; G-Secs in Capital Market Correct Answer Incorrect Answer
      C Both in the Foreign Exchange Market Correct Answer Incorrect Answer
      D Both exclusively in the Secondary Equity Market Correct Answer Incorrect Answer
      E Both exclusively in the Call Money Market Correct Answer Incorrect Answer

      Solution

      Treasury Bills are short-term debt instruments (maturity less than 1 year) traded in the Money Market, while dated Government Securities (G-Secs) are long-term instruments (maturity of 1 year or more) traded in the Debt/Capital Market.

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