BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Treasury bills are available for a minimum amount of ____ and in multiples
A
25, 000
B
50, 000
C
40, 000
D
30, 000
Explanation: 

Detailed explanation-1: -T-bills offer short-term investment opportunities. Treasury bills are available for a minimum amount of Rs. 25, 000 and in multiples of Rs. 25, 000.

Detailed explanation-2: -Minimum investment As per the regulations put forward by the RBI, a minimum of Rs. 25, 000 has to be invested by individuals willing to procure a short term treasury bill. Furthermore, any higher investment has to be made in multiples of Rs. 25, 000.

Detailed explanation-3: -Treasury bills are highly liquid instruments because of the fact that the RBI is always ready to purchase these bills. Moreover, they are also considered to be the safest instrument as they are issued by the RBI. They are available for a minimum amount of Rs 25, 000 and in multiples thereof.

Detailed explanation-4: -Treasury bills have a maximum maturity period of 364 days, making it easy for investors to make gains in the short term when compared to other securities. Investors who need cash during an emergency can sell their treasury bills in the security market and meet their liquidity needs.

Detailed explanation-5: -Treasury Bills are basically instruments for short term (maturities less than one year) borrowing by the Central Government. Treasury Bills were first issued in India in 1917. At present, the active T-Bills are 91-days T-Bills, 182-day T-Bills and 364-days T-Bills.

There is 1 question to complete.