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Question
Explain the following term/concept.
Treasury bills
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Solution
Treasury Bills are short-term securities issued by RBI to meet the government's short-term funds requirement. These bills are negotiable and freely transferable. They are sold to banks, individuals, firms, institutions, etc. The minimum value of T-bills is 25,000 or in multiples of 25000. These bills are also called Zero-Coupon Bonds. T-bills have three maturity periods - 91 days, 182 days, and 364 days.
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RELATED QUESTIONS
Central government is a borrower in the money market through the issue of ______.
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| 8) Secured promissory note |
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