Economics · Money Market Instruments
Consider the following statements and select the correct option: Assertion (A): In the Indian money market, Commercial Papers generally offer higher yields to investors than Treasury Bills of comparable maturity. Reason (R): Commercial Papers are unsecured short-term promissory notes issued by corporates and NBFCs, whereas Treasury Bills are risk-free instruments backed by the Government of India.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both (A) and (R) are true, and (R) is the correct explanation of (A).✓
- 2(A) is false, but (R) is true.
- 3(A) is true, but (R) is false.
- 4Both (A) and (R) are true, but (R) is NOT the correct explanation of (A).
Correct answer
Both (A) and (R) are true, and (R) is the correct explanation of (A).
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