ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

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: -A treasury bill is an instrument of short term debt.

Detailed explanation-5: -Money markets include markets for such instruments as bank accounts, including term certificates of deposit; interbank loans (loans between banks); money market mutual funds; commercial paper; Treasury bills; and securities lending and repurchase agreements (repos).