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: |ForumIAS

[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.

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