ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Call money
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Commercial paper
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Treasury bill
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Commercial bill
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Detailed explanation-1: -(1) Treasury Bills (T-Bills): It is a short-term borrowing instrument issued by the Government of India. RBI issues it on behalf of Government of India.
Detailed explanation-2: -1.3 Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest.
Detailed explanation-3: -Treasury bills, or T-bills, are the most marketable money market securities. Governments issue them to borrow money for a short period. T-bills are issued with maturities that range from 1 month to 1 year.
Detailed explanation-4: -Treasury Bills are short term (up to one year) borrowing instruments of the Government of India or by a central authority of any country which enable investors to park their short term surplus funds while reducing their market risk.
Detailed explanation-5: -A treasury bill is an instrument of short term debt.