Question

10. Default risk is lower in
(A) Treasury bills
(B) Government bonds
(C) ICICI Bonds
(D) IDBI bonds​

Answer 1

Government bonds

Treasury bonds

Answer 2

Answer:

Default risk is lower in Treasury bills.

Explanation:

• Treasury bills are also known as T-bills which are issued by Indian Government and available in three tenors.
• The higher the interest rate paid to the investor by the T-Bill, the longer the maturity date.
• Treasury bills are normally sold in $1,000 denominations, however they can go up to $5 million in some cases.

Hence default risk is lower in Treasury bills or T-bills.

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