NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to the Securities Market
Which of the following instruments is a money market instrument rather than a capital market instrument in the Indian securities market?
A Treasury bill issued by the Government of India is a money market instrument because it is a short-term debt security maturing within one year. Equity shares, ten-year corporate bonds and units of closed-ended equity schemes are long-term capital market instruments.
- AEquity share of a listed company
- BTreasury bill issued by the Government of IndiaCorrect
- CCorporate bond with a 10-year maturity
- DUnits of a closed-ended equity scheme
Explanation
Money market instruments have a maturity of up to one year. Treasury bills are issued for 91, 182 or 364 days, so they belong to the money market. Equity shares, long-dated bonds and equity scheme units are capital market instruments.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to the Securities Market shows your real accuracy, how long you take and where you lose marks.
More Introduction to the Securities Market questions
- Which of the following is classified as a primary market activity in the Indian securities market?
- In the Indian securities market, which entity is the statutory regulator that was established under the SEBI Act to protect investor interes…
- Which of the following is a money market instrument, as distinct from a capital market instrument?
- Which of the following best describes the role of SEBI in relation to the securities market?
- Which of the following is a primary market activity rather than a secondary market activity?
- A trading member's client wants to buy shares of a company that is listed on the exchange and traded in the rolling settlement segment. Unde…