BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Negotiable security
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Non negotiable security
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No security at all
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Quasi negotiable security
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Detailed explanation-1: -Treasury bills are highly liquid negotiable instruments. They are available in both financial markets, i.e. primary and secondary market.
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.
Detailed explanation-3: -T-Bills are negotiable instruments and profoundly liquid in nature because of more limited tenure.
Detailed explanation-4: -Hence, the bond is ‘unsecured. ‘ As examples, unsecured bonds are seen in the form of notes, corporate bonds, treasury bills, and more. In general, any bond which is issued without being backed by an asset class is unsecured.
Detailed explanation-5: -Treasury bills It is a short-term instrument for borrowing for the government. For these bills, the tender is issued in the money market and various government departments. Thus, for this, tenders are invited weekly from brokers and bankers.