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Which risk-and-return description applies to a Treasury Bill?

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Question

Which risk-and-return description applies to a Treasury Bill?

Options

  • An alternative to bank loans and capital market borrowings

  • Very low risk with assured return

  • Lower interest than market rates for companies

  • Interest that changes daily

MCQ
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Solution

Treasury Bills have very low risk with an assured return. They are also highly liquid short-term instruments.

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