NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Investing in Fixed Income Securities (NISM XXI-A)
In India, which of the following instruments is a money market instrument issued by the Government of India with original maturity of up to one year, issued at a discount and redeemed at face value?
A Treasury Bill is the instrument described. It is issued by the Government of India at a discount and redeemed at face value, with original maturity up to 364 days, unlike dated securities, commercial paper or state development loans.
- ATreasury BillCorrect
- BDated Government Security
- CCommercial Paper
- DState Development Loan
Explanation
Treasury Bills are short-term government instruments issued at a discount to face value and redeemed at par, with maturities of 91, 182 and 364 days. Dated securities have longer maturity and pay coupons. Commercial paper is issued by corporates, and SDLs by states.
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