NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which of the following instruments is a money market instrument, having an original maturity of up to one year?
A Treasury bill is a money market instrument. It is a short-term government security issued for 91, 182 or 364 days, within the one-year limit of the money market. Long-dated debentures and government securities are capital market debt, and equity shares have no maturity.
- ATreasury billCorrect
- BDebenture with 10-year maturity
- CEquity share
- DGovernment dated security of 15 years
Explanation
Treasury bills are issued by the government with maturities of 91, 182 or 364 days, so they belong to the money market. Debentures of 10 years and dated government securities of 15 years are long-term debt, and equity shares have no maturity.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Securities Markets shows your real accuracy, how long you take and where you lose marks.
More Introduction to Securities Markets questions
- In the Indian securities market, which entity acts as the first point of contact for the issuer when a company raises money through a fresh …
- Which of the following best describes a rights issue by a listed company?
- Which instrument is a money market instrument issued by the Government of India with an original maturity of up to 364 days?
- Which of the following is a debt instrument issued by the Government of India with a maturity of less than one year?
- An investor buys a share at ₹400 and sells it after one year at ₹460, having received a dividend of ₹20 during the year. What is the total h…
- An investor buys a share at Rs 400, receives a dividend of Rs 12 during the year and sells it at Rs 436 at year end. What is the holding per…