Which of the following are instrument/s of the money market ? Cash management bills Treasury bills Certificate of Deposits State Development Loans Select the correct answer using the code given below: Options: A . &nbsp(ii) & (iii) only B . &nbsp(i) & (iv) only C . &nbsp(i) & (ii) only D . &nbsp(i), (ii) & (iii) only

Which of the following are instrument/s of the money market? Cash management

Question

Which of the following are instrument/s of the money market?

Cash management bills

Treasury bills

Certificate of Deposits

State Development Loans

Select the correct answer using the code given below:

Options:

A . (ii) & (iii) only

B . (i) & (iv) only

C . (i) & (ii) only

D . (i), (ii) & (iii) only

Answer: Option D
Answer: (d)
In money market, short term (less than one-year maturity), highly liquid and debt instruments are traded. State Development Loans (SDL) have a maturity of more than a year.
Cash management bills, Treasury bills and Certificate of deposits are debt instruments with less than one year maturity.
Certificate of Deposit (CD) is a negotiable/tradable money market instrument (a kind of Promissory Note) and issued in dematerialised form against funds deposited at a bank or other eligible financial institution for a specified time period.
(It is different from the Deposit certificates that individuals get when they deposit money in a bank that is non-tradable).

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