Correct answer: (b) Only two
Explanation
- A
Only one
Only one. Government bonds and equities are both capital-market instruments.
- B
Only two
Only two. G-sec market and stock market. Call money and T-bills are money market.
- C
Only three
Only three. Call money and T-bills are short-term, not capital market.
- D
All four
All four. Money-market legs must be dropped.
Summary. Official key is (b) only two. Capital markets are for long-term funds: government bonds and shares. Call money (overnight) and treasury bills (up to one year) sit in the money market.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2024 · Q51 · General Studies · 2 marks
Consider the following statements : Statement-I : If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment. Statement-II : The USA Government debt is not backed by any hard assets, but only by the faith of the Government. Which one of the following is correct in respect of the above statements ? -
2021 · Q13 · General Studies · 2 marks
With reference to India, consider the following statements: 1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market. 2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India. 3. The 'Central Depository Services Ltd' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct? -
2018 · Q56 · General Studies · 2 marks
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?