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 is a money market instrument issued by banks to raise short-term funds from investors, with a maturity of up to one year?
A Certificate of Deposit is the money market instrument issued by banks to raise short-term funds, with maturity of up to one year. The other options are long-term instruments in the capital market rather than short-term money market papers.
- ACertificate of DepositCorrect
- BDebenture with a 10-year tenure
- CPerpetual bond
- DGovernment dated security
Explanation
Certificates of Deposit are negotiable, short-term money market instruments issued by banks, with maturity of up to one year. The others are longer-term capital market instruments.
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