With reference to the instruments of the organised money market in India, consider the following statements: 1. Treasury Bills of 14-day maturity are still issued by the Government of India. 2. Certificates of Deposit (CDs) are tradable instruments issued only by commercial banks. 3. Commercial Paper (CP) can be issued only by listed companies with a minimum working capital of ₹3 crore. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 3 only

[D] 1, 2 and 3

Answer: C

Notes:

Explanation:

The 14-day Treasury Bills (both intermediate and auctionable) were discontinued in 2001. Currently, only the 91-day, 182-day, and 364-day TBs are issued.
While CDs were initially issued only by banks, since 1993, certain financial institutions like IFCI, IDBI, and Exim Bank can issue CDs for periods above 1 year.
Only listed companies with a minimum working capital of ₹3 crore and approved credit rating can issue Commercial Paper.

Source: Indian Economy (Dr. Ramesh Singh)