ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dividend
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Short term debt
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Long term debt Interest
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None of the above
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Detailed explanation-1: -A Treasury Bill is an instrument to borrow short term funds by the Government of India. They have a maturity period of less than a year. They are also called Zero-Coupon Bonds. They are issued by the RBI on behalf of the Central Government.
Detailed explanation-2: -A treasury bill is an instrument of short term debt.
Detailed explanation-3: -Treasury bills or T-bills, which are organized money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenures, namely, 91 day, 182 day and 364 day. Treasury bills are zero-coupon securities and pay no interest.
Detailed explanation-4: -Treasury Bills are an instrument to borrow short term funds.
Detailed explanation-5: -Treasury bills are money market instruments issued by the Government of India as a promissory note with guaranteed repayment at a later date. Funds collected through such tools are typically used to meet short term requirements of the government, hence, to reduce the overall fiscal deficit of a country.