BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BANKING AND INSURANCE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Treasury Bills:short-term government securities issued at a discount from face value and returning the face amount at maturity
A
True
B
False
Explanation: 

Detailed explanation-1: -1.3 Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest.

Detailed explanation-2: -Treasury Bills are short-term securities with five term options, from 4 weeks up to 52 weeks. Bills are sold at face value or at a discount from the face value. When they mature, you’re paid the face value. More About Treasury Bills.

Detailed explanation-3: -They are issued at a discount to the published nominal value of government security (G-sec). Government treasury bills can be procured by individuals at a discount to the face value of the security and are redeemed at their nominal value, thereby allowing investors to pocket the difference.

Detailed explanation-4: -Treasury Bills These securities do not pay any interest; instead, they are issued at a discount rate and redeemed at face value on the date of the maturity.

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