CSEET · Economic and Business Environment · Indian Financial Markets
In the Indian securities market, which of the following is a debt instrument issued by the Government of India with a maturity of less than one year?
A Treasury Bill is the correct answer. It is a short-term debt instrument issued by the Government of India with maturity below one year (91, 182 or 364 days), whereas government bonds are long term and shares are issued by companies, not governments.
- ATreasury BillCorrect
- BEquity share
- CGovernment bond of 10 years
- DPreference share
Explanation
Treasury Bills are short-term money market instruments issued by the Government of India with maturities of 91, 182 and 364 days, so they mature in under one year. A 10-year government bond is a long-term instrument. Equity and preference shares are ownership or hybrid instruments of companies, not government debt.
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