Question

17. Which of the following statements is not true with regard to Treasury bills?
(a) Are issued in the form of a promissory note.
(b) They are highly liquid and have assured yield
(c) They carry high risk of default.
(d) They are available for a minimum amount of 25,000 and in multiples thereof
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Answer 1

Answer:

Answer: b

Explanation:

(b) it has no physical locations

Answer 2

Answer:

The correct answer is (c) They carry high risk of default.

Explanation:

• Treasury bills are allocated when the government requires money for a short duration.
• These bills exist published only by the central government, and their interest in them is specified by market forces.
• Treasury bills are money market instruments delivered by the Government of India as a promissory note with guaranteed repayment on a specific date in the future. Assets collected through such tools exist ordinarily used to complete momentary needs or for short-term use essentials of the public authority, thus, facilitating the overall monetary shortage of a country.

Therefore, (c) They carry a high risk of default is not true with regard to Treasury bills.