Consider the following statements: 1. Cash Management Bills (CMBs) are issued for maturities less than 91 days. 2. Treasury Bills (T – Bills) are long term debt instruments issued by the Centre. Which of the statements given above is/are correct? |ForumIAS

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[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation: CMBs are similar to T-bills but are issued for maturities less than 91 days.

Treasury bills are short term debt instruments issued by the Centre in three tenors, namely, 91 day, 182 day and 364 day.

Source: Ramesh Singh