Q. Which of the following treasury bills is/are discontinued from money market? :
1. 14 day treasury bills
2. 91 day treasury bills
3. 182 day treasury bills
Select the correct answer using the codes given below:

[A] 1 only

[B] 2 and 3 only

[C] 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Treasury Bills (TBs):

  • This instrument of the money market though present since Independence got organised only in 1986.
  • They are used by the Central Government to fulfill its short-term liquidity requirement up-to the period of 364 days. There developed five types of the TBs in due course of time:
    • 14-day (Intermediate TBs)
    • 14-day (Actionable TBs)
    • 91-day TBs
    • 182-day TBs
    • 364-day TBs
  • Out of the above five variants of the TBs, at present only the 91-day TBs, 182-day TBs and the 364-day TBs are issued by the government. The other two variants were discontinued in 2001.

Source: Source