✅ Answer: B) Government of IndiaTreasury Bills (T-Bills) are issued by the Government of India to meet its short-term cash requirements. They are zero-coupon instruments — issued at a discount and redeemed at face value. Maturities: 91 days, 182 days, and 364 days. They are the safest money market instruments.

✅ Answer: C) 1988SEBI (Securities and Exchange Board of India) was established in 1988 as a non-statutory body. It was given statutory powers by the SEBI Act, 1992. SEBI is headquartered in Mumbai and regulates the securities market in India.

✅ Answer: A) 1875BSE (Bombay Stock Exchange) was established in 1875 — it is the oldest stock exchange in Asia. NSE (National Stock Exchange) was established in 1992. BSE’s benchmark index is Sensex (30 stocks) and NSE’s is Nifty 50 (50 stocks).

✅ Answer: B)FDI involves management control — the investor holds 10% or more equity and has a say in management. FPI involves less than 10% equity with no management control. FDI is long-term and stable; FPI is short-term and volatile (“hot money”). FDI is regulated by DPIIT; FPI by SEBI.

✅ Answer: C) Corporates and Financial InstitutionsCommercial Paper (CP) is issued by corporates and financial institutions to raise short-term funds. It is an unsecured instrument issued at a discount. Minimum denomination is ₹5 lakh. Maturity ranges from 7 days to 1 year.

✅ Answer: B)ADR (American Depositary Receipt) allows Indian companies to raise capital from American investors by listing on US stock exchanges (NYSE, NASDAQ). The company deposits its shares with a custodian bank, which issues ADRs to American investors. Example: Infosys ADR on NYSE.

✅ Answer: A) 30 companiesSensex (Sensitive Index) tracks the performance of 30 large, well-established companies listed on BSE. Nifty 50 tracks 50 companies on NSE. BSE 500 tracks 500 companies. Sensex is the most widely followed stock market index in India.

✅ Answer: A) Primary MarketAn IPO (Initial Public Offering) is part of the Primary Market — where companies issue new securities for the first time to raise fresh capital. After the IPO, the shares are listed on stock exchanges and traded in the Secondary Market.

✅ Answer: C) Reserve Bank of IndiaExternal Commercial Borrowings (ECB) are regulated by the Reserve Bank of India. ECBs are loans raised by Indian companies from foreign sources. They have a minimum maturity of 3 years. ECBs cannot be used for real estate or stock market investment.

✅ Answer: C)FPI is called “hot money” because it can flow in and out of the country very quickly. When FPIs sell Indian stocks and take money out, it can cause the rupee to depreciate and stock markets to fall. This volatility is why FPI is considered less stable than FDI.