NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Securities Market
Which of the following instruments is a money market instrument rather than a capital market instrument in India?
A treasury bill is a money market instrument because it is issued for short maturities of up to one year, such as 91, 182 or 364 days. Equity shares, preference shares and ten-year debentures are long-term capital market instruments.
- AEquity share
- BTreasury billCorrect
- CDebenture with 10-year maturity
- DPreference share
Explanation
Money market instruments have maturity up to one year. Treasury bills are issued by the government with maturities of 91, 182 and 364 days, so they belong to the money market. Equity, preference shares and long-term debentures are capital market instruments.
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