6. Commercial papers are issued by:
a) Banks
b) Non-banking financial companies (NBFCs)
c) Central government
d) State governments
7. The Reserve Bank of India uses __________ to control inflation in the money market.
a) Open market operations
b) Repo rate
c) Reverse repo rate
d) Cash reserve ratio
8. Which of the following entities can issue treasury bills in India?
a) RBI
b) State governments
c) Central government
d) All of the above
9. Money market instruments are generally considered:
a) High risk-high return investment options
b) Low risk-low return investment options
c) High risk-low return investment options
d) Low risk-high return investment options
10. The main difference between treasury bills and commercial papers is:
a) Issuer: Treasury bills are issued by the government, while commercial papers are issued by corporates.
b) Maturity period: Treasury bills have a fixed maturity period, while commercial papers have a variable maturity period.
c) Rate of interest: Treasury bills offer a fixed rate of interest, while commercial papers offer a floating rate of interest.
d) All of the above
