A _________ is basically an instrument of short-term borrowing by the Government of India maturing in less than one year.

call money

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treasury bill

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commercial paper

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certificate of deposit

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Solution

The correct option is B treasury bill
A treasury bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. Treasury bills enable government to get short term borrowings as these bills are sold to banks and general public. Maturity of Treasury bills varies from 14 to 364 days.

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Similar questions

A Treasury Bill is basically

(a) An instrument to borrow short-term funds

(b) An instrument to borrow long-term funds

(d) None of the above

___ is a short-term lending instrument used only by banks on interbank lending.

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