Which of the following statement is false about Treasury bills?Question 3Answera.It is issued by government / RBIb.It is a secure Instrumentc.It is a promissory noted.It is issued for maturity of more than 1 year
Question
Which of the following statement is false about Treasury bills?Question 3Answera.It is issued by government / RBIb.It is a secure Instrumentc.It is a promissory noted.It is issued for maturity of more than 1 year
Solution
The false statement about Treasury bills is:
d. It is issued for maturity of more than 1 year
Explanation: Treasury bills, or T-bills, are short-term debt instruments issued by the Government of India and managed by the Reserve Bank of India (RBI). They are issued for the short term only, typically for maturity periods of 91 days, 182 days, or 364 days. Therefore, they are not issued for maturity of more than 1 year.
Similar Questions
Which of the following statements about Treasury banknotes is untrue?a.They have a guaranteed yield and are highly liquid.b.They are distributed as promissory notes.c.They can be purchased for a minimum of 15,000 and in multiples of that sum.d.They pose a significant default risk.
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