ECONOMICS
FINANCIAL MARKETS
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: -They’re usually issued in denominations of $1, 000, $5, 000, $10, 000, $25, 000, $50, 000, $100, 000 and $1 million. Note that brokers generally require a minimum purchase of $10, 000. T-bills (and other Treasuries) are considered to be the safest investments in the financial market because governments back them.
Detailed explanation-2: -Treasury Bills (T-Bills) Issued by the Central Government, Treasury Bills are known to be one of the safest money market instruments available. However, treasury bills carry zero risk.
Detailed explanation-3: -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-4: -A treasury bill is an instrument of short term debt.
Detailed explanation-5: -T-Bills Are a Safe Investment Investors who hold T-bills can rest assured that they will not lose their investment. T-Bills are considered a zero-risk investment thanks also to Treasury market liquidity.