NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which of the following is a debt market instrument issued by the Government of India for short-term borrowing with maturity up to one year?
A Treasury Bill is the Government of India instrument for short-term borrowing with maturity up to one year, issued at a discount and redeemed at face value. Dated government securities have longer maturities, so they do not fit this description.
- ATreasury BillCorrect
- BDated Government Security of 10 years
- CEquity share
- DConvertible debenture
Explanation
Treasury Bills are short-term money market instruments issued by the Government of India at a discount, with maturities of 91, 182 or 364 days. Dated government securities have longer maturities, and equity shares and convertible debentures are not sovereign short-term instruments.
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