Multiple Choice Questions on Consider the following statements 1 Treasury bills can be issued only by the Central Government 2 Ca........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

Consider the following statements 1 Treasury bills can be issued only by the Central Government 2 Ca...........

Economic Affairs Public Finance and Debt Management
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    Consider the following statements

    1.Treasury bills can be issued only by the Central Government.

    2.Call money market are inter-bank money market where funds are borrowed and lent for 180 days.

    Which of the statements given above is/are correct?

    1 only

    Correct Answer

    2 only

    Incorrect Answer

    Both 1 and 2

    Incorrect Answer

    Neither 1 nor 2

    Incorrect Answer
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    Explanation:

    1 only

    Treasury bills are indeed issued only by the Central Government.

    Call money market involves inter-bank lending and borrowing, but the funds are typically for very short durations, usually overnight or for a period much shorter than 180 days. The statement is incorrect regarding the specified time frame.

     

    By: Kamal Kashyap
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