NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which instrument is a money market instrument issued by the Government of India with an original maturity of up to 364 days?
A Treasury bill is the Government of India money market instrument with original maturity up to 364 days. It is issued at a discount and redeemed at face value. Dated government securities mature over longer periods, while debentures and preference shares are issued by companies.
- ATreasury billCorrect
- BDated government security
- CDebenture
- DPreference share
Explanation
Treasury bills are short-term government instruments issued at a discount with maturities of 91, 182 or 364 days. Dated government securities have longer maturities, and debentures and preference shares are corporate instruments.
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