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Financial Market — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Market1 Mark
MCQ
Multiple choice question.Treasury Bills are basically:
  • ✓
    An instrument to borrow short term funds.
  • B
    An instrument to borrow long term funds.
  • C
    An instrument of capital market.
  • D
    None of the above.
✓

Answer

Correct option: A.
An instrument to borrow short term funds.
A Treasury Bill is an instrument to borrow short term funds by the Government of India. They have a maturity period of less than a year. They are also called Zero-Coupon Bonds. They are issued by the RBI on behalf of the Central Government.

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