BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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government bonds
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treasury bills
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bills of exchange
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capital bills
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Detailed explanation-1: -Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).
Detailed explanation-2: -Government bonds are long term investment bonds where the maturity is ranging from 5 years – 40 years. Hence, the bond might lose its value over this period. If inflation rises, the interest rate is less attractive. Also, higher the bond period, the market risk also increases along with interest rate risk.
Detailed explanation-3: -In the investing world, “government security” applies to a range of investment products offered by a governmental body. For most readers, the most common types of government securities are those items issued by the U.S. Treasury in the form of Treasury bonds, bills, and notes.
Detailed explanation-4: -The India 1 Year Government Bond has a 7.246% yield (last update 25 Feb 2023 0:15 GMT+0). Yield changed +3.2 bp during last week, +50.3 bp during last month, +284.8 bp during last year.