Sample Materials for CSAT Paper -1 (G.S.) Pre 2013: “Indian Economy – Money Market and Capital Market in India”

1. Certificates of deposit (CD), commercial paper (CP), Bill market are the instruments of money market.
2. Call / Notice money is money borrowed or lent for a very short period.
3. Treasury Bills are short-term money market instruments, which are issued by the RBI on the behalf of GOI.

Which of the statement given above is / are correct.

1. 1 & 2 only
2. 2 & 3 only
3. 1,2 & 3
4. 1 & 3 only

1. A considerable part of the governments borrowings takes place through Treasury Bills.
2. Bonds with variable interest rates with a fixed percentage over a benchmark rate is called floating Rate Bonds.
3. The minimum investment in government securities is Rs. 10000.

Which of the statement given above is / are correct.

1. 1,2 & 3
2. 2 & 3 only
3. 1 & 2 only
4. 1 & 3 only