NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to the Indian Financial Markets
In the Indian financial system, which of the following is classified as a money market instrument rather than a capital market instrument?
A Treasury bill is a money market instrument because it is a short-term government debt security with original maturity of up to one year (91, 182 or 364 days). Equity shares and long-term bonds or government securities are capital market instruments.
- AEquity share of a listed company
- BTreasury bill issued by the Government of IndiaCorrect
- CCorporate bond with 10-year maturity
- DGovernment security with 15-year maturity
Explanation
The money market deals in short-term instruments with maturity up to one year, such as treasury bills, commercial paper and certificates of deposit. Equity shares and long-dated bonds or government securities belong to the capital market.
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