Skip to content

NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments

Ms. Kavita Rao, a client of an investment adviser, wants to park surplus funds for 60 days in a instrument issued at a discount to face value by the Government of India. Which instrument fits her need?

A Treasury Bill fits. T-Bills are short-term government money market securities issued at a discount to face value and redeemed at par, with tenures of 91, 182 or 364 days. Commercial paper and CDs are not government issues, and SDLs are long-term.

  1. ATreasury BillCorrect
  2. BState Development Loan
  3. CCommercial paper issued by a corporate
  4. DCertificate of deposit issued by a bank

Explanation

Treasury Bills are short-term money market instruments issued by the Government of India at a discount and redeemed at face value, with maturities of 91, 182 and 364 days. SDLs are long-term bonds issued by states. CPs and CDs are issued by corporates and banks respectively, not the central government.

Did you get it right without looking?

One question tells you little. A timed set on Securities Market Segments shows your real accuracy, how long you take and where you lose marks.

Practise Securities Market SegmentsFree diagnostic mock

More Securities Market Segments questions