BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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14 days and 84 days
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182 days and 364 days
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18 days and 36 days
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91, 182 & 364 days
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Detailed explanation-1: -They are sold in auctions at a discount from the par value of the bill. They are offered with maturities of 28 days (one month), 91 days (3 months), 182 days (6 months), and 364 days (one year).
Detailed explanation-2: -So in other words, the T-bill offers a return on investment of 12.4052%, but since you held it for 91 days, you will enjoy this return on a pro-rata basis. Typical 91-day yields are around 6-7.5%.
Detailed explanation-3: -T-bills can have maturities of just a few days or up to a maximum of 52 weeks, but common maturities are four, eight, 13, 26, and 52 weeks.1 On average, the longer the maturity date, the higher the interest rate that the T-Bill will pay to the investor.
Detailed explanation-4: -Treasury bills, or T-bills, have a maximum maturity period of 364 days. So, they are categorised as money market instruments (money market deals with funds with a maturity of less than one year).