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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to the Indian Financial Markets

Which of the following instruments is a money market instrument, as opposed to a capital market instrument, in the Indian financial market?

A 91-day treasury bill is a money market instrument because money market instruments have original maturity of up to one year. Equity shares, long-dated debentures and 20-year government securities are long-term and belong to the capital market.

  1. AEquity share of a listed company
  2. BTreasury bill with 91-day maturityCorrect
  3. CDebenture maturing in 10 years
  4. DGovernment security maturing in 20 years

Explanation

Money market instruments have maturity up to one year. A 91-day treasury bill qualifies. Equity shares, 10-year debentures and 20-year government securities are long-term capital market instruments.

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