Business Studies

Financial Markets

Medium

An investor wanted to invest Rs. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose, he came to know it was not possible.

Identify the reason why the investor could not invest in the Treasury Bill.

Treasury Bills can be issued for a minimum amount of Rs. 25,000 and in multiples thereof.

Treasury Bills can be issued to Financial Institutions only.

Treasury Bills are Zero Coupon Bonds issued by the State Government on behalf of Reserve Bank of India.

Treasury Bills are an instrument of short-term borrowing by the Government of India maturing after one year.

✅ Correct Option: 1

Treasury Bills are issued for a minimum amount of Rs. 25,000 and in multiples thereof, so an investment of Rs. 20,000 falls below the minimum. The other options are factually wrong: T-bills are issued by the Government of India through RBI, mature within one year, and are available to banks, institutions and individuals alike.

2022: 20 Aug Shift 1

The process of holding securities in an electronic form is known by a specific term. Identify the term.

2026: 23 May Shift 1

Select the correct order of trading and settlement procedure on the stock exchange.

A. Signing a broker - client agreement

B. Open a DEMAT Account

C. Placing an order with a broker to buy or sell shares.

D. Broker will go online to match share and best price available.

Choose the correct answer from the options given below:

2026: 21 May Shift 2

The following is not a method of floating new issues in the primary market:

2026: 11 May Shift 2

"If an investor wishes to buy or sell any security, he has to provide certain information to the broker for opening a trading account" The information provided is :

2022: 15 July Shift 2

"Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues" - which function of stock exchange is highlighted by the given statement?

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I (Terms related to Financial Markets)		LIST-II (Key words)
A.	Primary Market	I. Short Term Fund Market
B.	SEBI	II. Securities Market Regulator
C.	Money Market	III. New Issue market
D.	NSE	IV. Nationwide Trading Facility Establishment

Choose the correct answer from the options given below:

An investor wanted to invest Rs. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose, he came to know it was not possible. Identify the reason why the investor could not invest in the Treasury Bill.

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)

An investor wanted to invest Rs. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose, he came to know it was not possible.

Identify the reason why the investor could not invest in the Treasury Bill.