BANKING AFFAIRS

Detailed explanation-1: -Which of the following are characteristics of Treasury Bills? Notes: Treasury bills, or T-bills, are short-term debt instruments issued by the U.S Treasury. T-bills are issued for a term of one year of less. Treasury bills are sold with maturities of four, thirteen, twenty-six and fifty-two weeks.

Detailed explanation-2: -Treasury bills have a maturity of one year or less, and they do not pay interest before the expiry of the maturity period. 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-3: -Treasury bonds (T-bonds) are fixed-rate U.S. government debt securities with a maturity range between 10 and 30 years. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.

Detailed explanation-4: -The correct option is A. an instrument to borrow short term funds. Treasury Bills are an instrument to borrow short term funds. These are issued by RBI on behalf of the Government of India.

Detailed explanation-5: -A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less. Treasury bills are usually sold in denominations of $1, 000.