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Consider the following (markets) related to Indian money markets:

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Consider the following (markets) related to Indian money markets:

A. Repurchase auctions.
B. Treasury bills market.
C. Discount and finance house of India.
D. Satellite Dealers.

How many of the above is/are considered as money markets?

  1. A, B and D only
  2. B, C and D only
  3. A, B and C only
  4. All the above

Answer:
4. All the above

Explanation:

  • A. Repurchase auctions: This is a key money market instrument used by the Reserve Bank of India (RBI) to manage liquidity in the banking system. It allows banks to borrow money against government securities.
  • B. Treasury bills market: Treasury bills are short-term government securities that are an essential component of the Indian money market.
  • C. Discount and Finance House of India (DFHI): It was set up to promote money market instruments and is actively involved in secondary market trading of money market instruments.
  • D. Satellite Dealers: These are institutions created to strengthen and promote the government securities market and are also part of the money market framework.

Source:

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