Financial Awareness - Risk, Stability & Emerging Finance
Which of the following instruments is a short-term money market instrument issued by the government to meet short-term borrowing needs?
Which of the following instruments is a short-term money market instrument issued by the government to meet short-term borrowing needs?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand the instrument types
Treasury Bills are short-term government securities issued to meet short-term borrowing needs.Step 2: Analyze options
Equity shares and mutual fund units are long-term investment instruments, while debentures are long-term debt instruments. Treasury Bills are the only short-term government instrument listed.Final Answer:
Treasury Bills → Option DQuick Check:
Treasury Bills = short-term government borrowing instrument ✅
Quick Trick: Remember T-Bills are short-term government securities.
Common Mistakes:
- Confusing debentures or equity shares with short-term instruments.
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