[amp_mcq option1=”1 and 3″ option2=”2 only” option3=”4 only” option4=”None of the above” correct=”option2″]<\/p>\n
The correct answer is: B. 2 only<\/p>\n
Option 1 is correct. The call money market is a market for short-term loans, typically with maturities of one day to fourteen days. The loans are made between banks and other financial institutions, and they are used to meet short-term liquidity needs.<\/p>\n
Option 2 is incorrect. Treasury bills are short-term debt obligations issued by the government. They are considered to be very safe investments, and they are used to finance the government’s day-to-day operations. Treasury bills are issued at a discount, and they mature at face value.<\/p>\n
Option 3 is correct. A reduction in the repo rate makes it cheaper for banks to borrow money from the Reserve Bank of India. This can lead to lower interest rates for borrowers, and it can also stimulate economic activity.<\/p>\n
Option 4 is correct. Money market mutual funds are a type of mutual fund that invests in short-term money market instruments. These instruments include Treasury bills, commercial paper, and certificates of deposit. Money market mutual funds are a safe and liquid investment, and they are a good option for investors who are looking for a place to park their money for a short period of time.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”1 and 3″ option2=”2 only” option3=”4 only” option4=”None of the above” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699],"tags":[],"class_list":["post-33028","post","type-post","status-publish","format-standard","hentry","category-banking-and-financial-institutions","no-featured-image-padding"],"yoast_head":"\n