Consider the following statements:1.The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.2.Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments.3.Treasury bills are issued at a discount from the par value.Which of the statements given above is/are correct?

1. A

   1 and 2 only

   (a) 1 and 2 only. Statement 2 is right—only the Union issues treasury bills—but statement 1 is wrong because RBI manages and services both Government of India securities and State Development Loans. Pairing 1 with 2 therefore fails. This option is not the key.

2. B

   3 only

   (b) 3 only. T-bills are indeed issued at a discount to face value and redeemed at par, so statement 3 is true, yet statement 2 is also true. Isolating 3 under-counts. This option is not the key.

3. C

   2 and 3 only

   (c) 2 and 3 only. States do not issue treasury bills; only the Government of India does. Those bills are discount instruments. Statement 1 fails because RBI is banker and manager for State government securities as well. Hence 2 and 3 together. This option is the official key.

4. D

   1, 2 and 3

   (d) 1, 2 and 3. Statement 1 is false, so the full set cannot stand. This option is not the key.

Summary. Official key is (c) 2 and 3 only. RBI manages both Union dated securities and State Development Loans, so statement 1 is incorrect. Treasury bills are a Union cash-management tool; States do not issue T-bills. T-bills are sold below par and repaid at face value, which is statement 3. The surviving pair is therefore 2 and 3. That is the stored key.