With reference to Indian Money Market, arrange the following events in chronological order- 1. Establishment of Discount and Finance House of India Limited (DFHL) 2. Establishment of Securities Trading Corporation of India (STCI) 3. Introduction of Certificate of Deposit 4. Introduction of Repurchase Agreement (Repo) by R.B.I. Select the correct answer

[amp_mcq option1=”1, 3, 4, 2″ option2=”1, 2, 3, 4″ option3=”4, 2, 3, 1″ option4=”2, 4, 1, 3″ correct=”option1″]

The correct answer is: A. 1, 3, 4, 2

The Discount and Finance House of India Limited (DFHL) was established in 1981. The Securities Trading Corporation of India (STCI) was established in 1985. Certificate of Deposit (CD) was introduced in 1986. Repurchase Agreement (Repo) was introduced by the Reserve Bank of India (RBI) in 1992.

The DFHL was established to provide short-term finance to the corporate sector. The STCI was established to develop and promote the secondary market for government securities. The CD was introduced to provide a convenient and flexible instrument for raising short-term funds by banks and other financial institutions. The Repo was introduced by the RBI to provide liquidity to the money market.

The following is a brief description of each option:

• Option A: 1, 3, 4, 2. This is the correct answer. The DFHL was established in 1981, the CD was introduced in 1986, the STCI was established in 1985, and the Repo was introduced by the RBI in 1992.
• Option B: 1, 2, 3, 4. This is not the correct answer. The STCI was established in 1985, after the DFHL was established in 1981.
• Option C: 4, 2, 3, 1. This is not the correct answer. The Repo was introduced by the RBI in 1992, after the CD was introduced in 1986.
• Option D: 2, 4, 1, 3. This is not the correct answer. The STCI was established in 1985, after the CD was introduced in 1986.