NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Introduction to Securities Markets
Which of the following is a money market instrument in India?
A Treasury bill is a money market instrument, because it is a short-term government security with maturity of up to one year, such as 91, 182 or 364 days. Equity shares, long-term bonds and futures are not money market instruments.
- AEquity share
- BTreasury billCorrect
- CCorporate bond with 10 years maturity
- DEquity index futures
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. Equity shares have no maturity, and a 10-year bond is a capital market debt instrument.
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