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Direction: Read the following text and answer the questions given below:
“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”
After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.
Q. On whose behalf does the RBI issue this instrument?
  • a)
    Government of India
  • b)
    Financial Institutions
  • c)
    Banks
  • d)
    Private Companies
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Direction: Read the following text and answer the questions given bel...
These are money market instruments issued by the Reserve bank of India (RBI) acting on the behalf of the central government (Government of India). These bills are issued when there is a shortage of funds, or when the RBI wants to control the cash liquidity in the market.
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Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer?
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Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
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On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following text and answer the questions given below:“Usually, money market funds are recommended to investors with an investment horizon of 90- 365 days. These schemes can help you diversify your portfolio and help invest surplus cash while maintaining liquidity. It is a good option for retail investors with smaller investment amounts. Ensure that you invest according to your investment plan.”After reading this article in a magazine, Ramesh who needs funds for his venture decided to buy a financial asset from the RBI. This financial asset is an instrument of short-term borrowing. He decided to buy it because he doesn’t want to take risk and wants an assured return. This instrument is a promissory note. It is highly liquid. This instrument is also known as Zero Coupon Bond. On this instrument is written T-91. Investment in this instrument started with just ₹ 25,000. For a higher value it is given in the multiples of ₹ 25,000.Q. On whose behalf does the RBI issue this instrument?a)Government of Indiab)Financial Institutionsc)Banksd)Private CompaniesCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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