BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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T-Bill.
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Floating rate Bonds
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Dated Securities
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Call/Put Option Bonds.
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Detailed explanation-1: -Types of Treasury Bills 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.
Detailed explanation-2: -The Government of India issues securities to raise capital for development projects. These securities are called government securities or G-secs, issued by RBI. The RBI manages the public debt of the Indian government. G-secs are issued in three forms: treasury bills, dated securities and bonds.
Detailed explanation-3: -In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
Detailed explanation-4: -1.2 A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.