Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Which of the following is considered a primary market instrument?

  • Offer through prospectus
  • Offer for sale
  • Treasury bill
  • Call money
  • e - IPOs
Options:

2, 3 and 4

1, 2 and 3

1, 3 and 5

1, 2 and 5

Correct Answer:

1, 2 and 5

Explanation:

The correct answer is option 4: 1, 2 and 5

3. Treasury bill →  This is a money market instrument, not a primary market method.

4. Call money →  Also a money market instrument, not related to primary market issuance. 

The following are the instruments of the primary market:

  • Offer through prospectus
  • Offer for sale
  • Private placement
  • Right issue
  • e - IPOs

The following are the instruments of the money market:

  • Treasury bill
  • Commercial paper
  • Call money
  • Certificate of Deposit
  • Commercial Bill